Insurer Rate Increases - Moderate in 1/1/2010
Liberty Mutual's eight subsidiaries exhibited the most aggressive stance, filing for no change in pure premium rates. On the other hand, American International Group's property and casualty subsidiary, Chartis, filed for an 8% increase in next year's workers' compensation rates. Security National Insurance Co. filed a 16.5% rate increase.
The Hartford Financial Services six insurance subsidiaries filed for a 6.4% rate increase, while four carriers belonging to the CNA Insurance Group filed for 10% rate increases. State Compensation Insurance Fund filed for a 5% increase and Zenith National Insurance Co. filed for a 2.7% rate hike.
More than half the 85 companies that have filed through December 1 are planning rate increases, but 10 intend to lower rates. And 25 companies are not changing rates.
Pushing to ensure it remained competitive as a business, several subsidiaries within the Chubb Group of Insurance Companies proposed decreased rates, led by an 8.9% drop scheduled by Great Northern Insurance Co. Chubb has not been as aggressive as other carriers in slashing rates in the past five years
The Workers' Compensation Insurance Rating Bureau had recommended a 22.8% increase in the pure premium rate, pointing to increasing medical losses and the danger of a return to subjective permanent disability ratings due to the Workers' Compensation Appeals Board's rulings in Almaraz/Guzman and Ogilvie. But Insurance Commissioner Steve Poizner rejected any increase, saying those WCAB decisions are still under appeal, and also that insurers had not done enough to take advantage of opportunities for cost savings created by the 2004 reform legislation. Poizner’s ruling is advisory only.
Keep on top of your open work comp claims … to control costs
The importance of staying on top of open workers’ compensation claims, and getting injured workers back to work was demonstrated once again in the latest report from the California Workers’ Compensation Institute. For all types of employers and industries covered by workers’ compensation insurance, 72% of claims are closed within 12 months, 82 % are closed within 24 months and 85 % are closed within 36 months. But look at the average cost of claims: at 12 months – average cost of a lost time injury claim = $9,710 according to the latest data. But at 24 months – average cost = $19,316 and at 36 months- average cost = $26,416.
Don Dressler Consulting has helped many of our clients lower experience modifications, put injured workers back to work, investigate accidents and improve safety, and save money.
Call Us Today: 949-533-3742
