JL_risklogo.png

Workers Comp Audit Stress Reducer
Use It For Your Next Premium Audit

California’s WCIRB Recommends 30% Rate Increase

Facebook
Twitter
LinkedIn

California’s WCIRB Says 30% Increase Appropriate

California’s WCIRB has recommended a 30% increase in Workers Comp pure premium rates. I was interviewed by The Insurance Journal on my opinion of the heavy increase and the possible effects.

Lettering of California's WCIRB Emblem from Web
(c) wcirb.com
My response was that the 30% increase could have easily been 50%. Why? The (WCIRB) Workers Compensation Insurance Rating Bureau, Actuarial Committee has recommended numerous increases over the last few years These have all been turned away by Insurance Commissioner Poizner.
One has to wonder if the denials of all the increases as a precursor to his gubernatorial aspirations. I am not sure if that was the Insurance Commissioner’s motivation.
The WCIRB could not have been wrong that often. Is the 30% a recommendation due to a cumulative affect or is this a one shot recommendation to pull the pure premium rates back in line with their old forecasts and recommendations?
The spiraling costs of medical treatment is very likely the main driver variable behind the recommended sharp increases. If the 30% increase is approved, will the WCIRB be back at the table recommending even more increases the next time?
In my next post, I will graph the true pure premium rate recommendations versus what was actually approved each time over the last few years.

 

©J&L Risk Management Inc Copyright Notice

Facebook
Twitter
LinkedIn

Related...

James J Moore - Workers Comp Expert

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Management Consultants, Inc. in 1996. J&L’s mission is to reduce our clients’ Workers Compensation premiums by using time-tested techniques. J&L’s claims, premium, reserve and Experience Mod reviews have saved employers over $9.8 million in earned premiums over the last three years. J&L has saved numerous companies from bankruptcy proceedings as a result of insurance overpayments.

James has over 27 years of experience in insurance claims, audit, and underwriting, specializing in Workers’ Compensation. He has supervised, and managed the administration of Workers’ Compensation claims, and underwriting in over 45 states. His professional experience includes being the Director of Risk Management for the North Carolina School Boards Association. He created a very successful Workers’ Compensation Injury Rehabilitation Unit for school personnel.

James’s educational background, which centered on computer technology, culminated in earning a Masters of Business Administration (MBA); an Associate in Claims designation (AIC); and an Associate in Risk Management designation (ARM). He is a Chartered Financial Consultant (ChFC) and a licensed financial advisor. The NC Department of Insurance has certified him as an insurance instructor. He also possesses a Bachelors’ Degree in Actuarial Science.

LexisNexis has twice recognized his blog as one of the Top 25 Blogs on Workers’ Compensation. J&L has been listed in AM Best’s Preferred Providers Directory for Insurance Experts – Workers Compensation for over eight years. He recently won the prestigious Baucom Shine Lifetime Achievement Award for his volunteer contributions to the area of risk management and safety. James was recently named as an instructor for the prestigious Insurance Academy.

James is on the Board of Directors and Treasurer of the North Carolina Mid-State Safety Council. He has published two manuals on Workers’ Compensation and three different claims processing manuals. He has also written and has been quoted in numerous articles on reducing Workers’ Compensation costs for public and private employers. James publishes a weekly newsletter with 7,000 readers.

He currently possess press credentials and am invited to various national Workers Compensation conferences as a reporter.

James’s articles or interviews on Workers’ Compensation have appeared in the following publications or websites:

  • Risk and Insurance Management Society (RIMS)
  • Entrepreneur Magazine
  • Bloomberg Business News
  • WorkCompCentral.com
  • Claims Magazine
  • Risk & Insurance Magazine
  • Insurance Journal
  • Workers Compensation.com
  • LinkedIn, Twitter, Facebook and other social media sites
  • Various trade publications

Subscribe

Get the latest workers' comp news FREE!

Name
This field is for validation purposes and should be left unchanged.