California HR

News Flash: Workers’ Compensation Insurers Face Mounting Losses; Employers May Be Hit With Higher Premiums

Some California workers’ comp insurers have been placed on a financial watch list by the California Department of Insurance because rating agencies have raised questions about the insurers’ financial stability. According to the California Workers’ Compensation Institute, for each $1 in premiums taken in during 1999, workers’ comp insurers paid out about $1.51 for claims and operating expenses. And if the bill to boost workers’ comp benefits is signed into law, things could get worse for insurers, resulting in big premium hikes for employers.