State of the State’s Workers’ Compensation Industry By Robert Warne - April 24, 2002
A report on the state of the state’s workers’ compensation system was released by the Commission on Health and Safety and Workers’ Compensation (CHSWC) April 22. The report is titled, “Background Paper—State of the Workers’ Compensation Insurance Industry in California.”
The report provides a historical perspective of the state’s workers’ compensation system pre- and post- 1993 legislative reforms. Profitability of insurance companies is also discussed in detail. Some of the factors in recent years impacting profitability included: written premiums, pure premium rates, combined loss and expense ratios, under-reserving and average claims costs.
The current insurance industry atmosphere and a discussion on financial insolvencies are included in the report. Also included are salient points ascertained from the CHSWC’s informal hearing on the state of the workers’ compensation insurance industry in California from February 2002.
CHSWC is charged with overseeing the health and safety and workers’ compensation systems in California and recommending administrative or legislative modifications to improve their operations. It was created by the workers’ compensation reform legislation of 1993.
Adjuster / Examiner Claims Examiner Santa Ana Unified School District Santa Ana, CA