HR Management & Compliance

E-Alert Item: Workers’ Compensation: Ratings Bureau Says Industry Is Severely Under-Reserved

Over the past year, many employers have seen a huge jump in their workers’ comp premiums—and even bigger hikes may be on the way. The Workers’ Compensation Insurance Rating Bureau has just reported that the California workers’ compensation insurance industry is under-reserved by a startling $13.7 billion. The WCIRB attributes the deficit to, among other things, poor pricing in prior years and the growing cost of claims. What’s more, even though the number of claims per year has dropped, the WCIRB predicts that the large increase in workers’ comp benefits as of Jan. 1, 2003, will fuel an increase in claims.

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