The CA WCIRP is currently considering a 12.6% rate increase for workers compensation insurance premiums effective January 1, 2013. This represents an 11.2% increase beyond what the California Insurance Commissioner approved just a few months ago.
Driving forces beyond the CA work comp rate increase include higher loss ratios, increased medical costs, and lower wage growth throughout the State. California already has some of the highest insurance rates in the country for workers compensation coverage.
It’s unfortunate for employers in the state since workers comp premium is funded entirely on their end. Employees will likely not much see wage increases next year as a direct result of these higher rates. The average increase in premium is a whopping $2.68 per hundred of payroll.
California employers should be diligent in shopping rates with several insurance companies to help control costs. There are a few insurance companies doing business in CA who continue to remain profitable on coverage within the state.