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California Rate Increase Not Due To Current Conditions


California Rate Increases Not Due to Insurance Environment

California’s Workers Comp conundrum was not due to the current medical price increases. The California rate increases were due to not incrementally increasing the rates as medical and other expenses had risen over time. The pundits on California’s Workers Compensation current environment have indicated a rate increase from 10% to 45%.

Graphics of Rate Increases Color Red Arrow and Black Percent
(c) 123rf.com

The bell is now tolling for employers in CA as the prior Insurance Commissioners and Governors would not increase the recommended rates for years even though the WCIRB (California’s Workers Comp Rating Bureau) had recommended huge increases for over five years.

I had written about the WCIRB’s recommendations being rejected by the Insurance Commissioner several times. Feel free to use the search box on the right side of the screen and search California or Insurance Commissioner.

The following is a list of the articles on CA’s inaction and the change in the environment:

Graphic Of Rate Increases Pecentage

The Golden State is the only state that I can recall where the Insurance Commissioner or Governor totally turned away a rate increase recommendation by their rating bureau. In fact, one of the responses from the Commissioner was a 27 point recommendation on how to reduce Workers Comp costs. I, as many in the Workers Comp community, was not surprised with the new and upcoming increases in rates.

In any state, the Insurance Commissioner should take heed of their rating bureau’s recommendations. The NCCI, WCIRB, and other Workers Comp rating bureaus are not just pulling numbers out of a hat. They have direct access to the statistics. The rating bureaus may not be perfect, but they are very accurate in most cases over a period of time.

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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


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