California Workers Comp Rating Bureau Calls For 40% Rate Increase!

Written by on 4/6/2011 2:02 AM . It has 0 Comments.

One more reason to love doing business in CA. 

A Clear Picture of California's Support For It's Business Owners!
A Clear Picture of California's Support For It's Business Owners!

I really wouldn't mind paying more if the money actually was going to legitimately injured workers.  Or if someone actually had the moral strength to really reform workers comp in CA , or health care in our country for that matter.  But what you and I end up with every time is some special interests groups version of what is fair for only those in their groups.

I mean we all know paying $40.00 for two Bayer Aspirins in a hospital is just wrong.  But since anyone that gets an upset stomach from these two aspirins immediately hires an attorney to sue the hospital, $39.50 of the cost of the aspirins have to be set aside to pay legal bills. 

Again, I believe that if someone is really injured, or needs help because something really went wrong they should get it.  But if I had a night of worry, or discomfort, is that really worth $10,000,000?  Come on, am I the only one that sees this?  The issue is for those of us that see this what can we do about it?  Call our congress person?  Not unless you have $1,000,000 to donate to their reelection fund... how did America get so messed up?  And how come California is the hardest on business of any state in the country? 

Anyway here is the latest on workers comp in CA. 

SAN FRANCISCO—The Workers' Compensation Insurance Rating Bureau of California soon may recommend a workers compensation pure premium rate increase of up to 40%.

The WCIRB's Actuarial Committee met Friday to review California workers comp insurer experience and found “significant pure premium rate inadequacy,” the San Francisco rating bureau announced Friday.

The WCIRB also said in a statement that insurers' “experience shows a deterioration of more than 10 percentage points since the WCIRB's Jan. 1, 2011, filing which recommended an increase in pure premium rates of 27.7%.”

Increased claims frequency, increased losses and rising loss adjustment expenses are driving expenses, the WCIRB said.

The organization's Governing Committee is scheduled to meet Wednesday to consider whether to authorize a call for increasing rates. California's insurance commissioner then can decide whether to adopt the rating bureau's advice and recommend a rate increase.

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