California’s workers compensation insurers lost more than $1.5 billion in their underwriting in 2009 as a result of a devastated economy and lower workers comp rates according to a report from the Sacramento Business Journal.
The summary of recently released workers comp data shows workers comp insurers garnered premiums of $9.1 billion in 2009, a 16.5% drop from the $10.9 billion they earned a year earlier, the California Workers Compensation Institute reported in an overview of 2009 insurer data released by the California Workers Compensation Insurance Rating Bureau of California.
Even though the figure of workers comp claims dropped in 2009, but insurers continued to witness costlier claims. (WCxKitz)
According to a bulletin from the California Workers Compensation Institute, “As usual, medical treatment remained the biggest single cost category in California workers compensation, accounting for just over one-third of total expenditures last year.”
Medical care payments increased to $3.68 billion in 2009, from $3.64 billion the prior year.
Payments for lost work time accounted for a quarter of insurers’ expenditures in 2009, according to the institute. (WCxKitz)
For those indemnity payments, temporary disability was the top claims category, accounting for $1.36 billion, or 48.35%.
Author Rebecca Shafer, Consultant / Attorney, Amaxx Risks Solutions, Inc. has worked successfully for 20 years with many industries to reduce Workers’ Compensation costs, including airlines, healthcare, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. Contact: Info@ReduceYourWorkersComp.com or 860-553-6604.
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