The Workers Compensation Insurance Rating Bureau on April 14th published The Insurer Experience for 2009.
The total written premium was $8.9 billion down from $10.7 billion for 2008.
The average rate per $100 of payroll was down slightly from $2.37 to $2.35. This is down 63% from 2003.
The accident year loss ratio was 75% up 6% from 2008.
The combined loss ratio was not reported but in 2008 it was 108% and the estimate is that it will be around 120%.
What does all this mean for CA? The pressure is on to increase rates and at some point they will go up and go up fast.
I do not see it happening this year but look out for January 2011. There will most likely be some increase in pricing .
The way your modification factor is calculated changed this year as well. Bottom line the "new math" will cause an increase in most modification factors as well. It is vital that business's adopt aggressive OSHA compliant safety programs and check their claims status each month. GDI brokers do this as a free service for our clients.