09/24/2021

California Workers Comp Premiums Soar 11%–Are We Headed for Another Crisis?

It’s still a far cry from the workers’ comp crisis of a decade ago, but workers’ comp premium volume soared nearly 11 percent last year, the third year in a row the tally has jumped by more than $1 billion.

The total climbed to more than $11.4 billion last year, according to theCalifornia Workers’ Compensation Institute, which is up $4.5 billion from the industry 10-year low in 2009, but still $4.7 billion less than 2004’s historic high of $16.1 billion 11 years ago.

The premium total for California workers’ comp insurers jumped $1.1 billion in calendar 2014, the institute said, citing market data compiled by the National Association of Insurance Commissioners and posted by the California Department of Insurance.

That increase reflected both growth in average premium rates as well as in covered payroll, as California’s economy continued its recent return to health following the deep recession starting in 2008.

View Article