I’ll stop blogging about this pretty soon. These last two are just the first in what I predict to be a series of serious insurance company withdrawals and failures in the CA workers compensation market. All leading to increased premiums and cost in an already broken system!
Here is a quick snap shot of just two of the manuals, and writings I have in my office documenting the rise, fall, rise and fall of the California Workers Compensation market.
What’s wrong? Simply put greed! Even good reform can’t stand in CA, or our nation as we look at the “health care reform” mess. A good idea? Maybe, but after all the concessions it takes to get enough people to agree to it, to make it law, well let’s just say it ends up with what we got!
Now that ACE's prediction that loss development trends would outpace rate increases in the California WC marketplace is coming true, they are beginning a staged exit from California WC. Last month they terminated several production sources today more sources were terminated. For those of us that speak english... What they are saying is since they didn't get approval for enough of a rate increase they decided to take their ball and go home!
What can you do? There is actually a book written on that as well; Here it is…
Or just let a GDI handle it for you! 888-991-2929
Or click here to visit or free online library of Workers Comp Savings Tips!
Here is a brief summary; all a business owner can do today is to position their business to have fewer and smaller workers compensation losses. Manage your modification factor to the low 70’s high 60’s is attainable in most classes with aggressive safety and compliance programs.
The idea is to be able to qualify for whatever the lowest rates are, while at the same time position your companies to have insurance companies (AKA greedy bastards) want your account because they see they can make money by insuring you… This will give you the best chance to limit the impact of what is about to happen.
The good news is you have just enough time. It will take about 12-18 months before rates get all the way back to where they were in 2005, and a bit longer before they go above that. It will take you this long to gain control.
I just was at an OSHA inspection at one of my clients. They had an accident and OSHA came to check them out. The inspector had been there three years ago. Today he was surprised I was there, and commented that he was happy to see my client was in compliance and had a good program in place. He asked me why I was there. I said, “Because I was the one that put the plan together and I am responsible if something wasn’t done correctly.
Where was your broker the last time OSHA visited your company?
Call GDI 888-991-2929