California Workers' Compensation: Trouble Still On The Horizon

California's workers' compensation insurance market place continues to surprise virtually everyone with poor financial results for the carriers, and dramatic premium increases for business operators.

Following several years of relatively low premiums that resulted from 'open rating' competition, the financial wherewithal of many carriers is being stretched to the limit. This is particularly true for the carriers who specialized in only California workers' compensation coverage, but has also included Superior National, HIH America, Great States, and other multi-state carriers.

Fueling the rate increases to businesses are increases in reinsurance costs to the carriers. (Reinsurance provides coverage for the insurance company to protect them against very large claims) In addition, many carriers simply are unable to buy reinsurance, and this in turn prevents them from offering coverage at any price. As carriers continue to lose money in California workers' compensation, their ratings are being downgraded.

California's workers' compensation insurance buyers are again threatening to leave the state, close their doors or take other drastic action in response to the rate increases. Those who don't take such action will need to focus on safety, loss prevention, and the efficient handling of claims to remain competitive in their industries.

Sullivan Curtis Monroe's approach to safety, loss prevention and claims management has helped mitigate rate increases for our clients, and our access to dozens of carriers allows us to find the most competitive program possible.

For more information regarding the current state of the workers' compensation insurance market place, please call (800) 533-6547.

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