Workers’ Comp Rates Decreasing
This last week, California Insurance Commissioner Ricardo Lara advised the Workers’ Compensation Insurance Rating Bureau to reduce the recommended rates an average of 9% effective January 1, 2020.
The lower rates result from a continuing trend of decreasing workplace injuries costs which began in 2015.
Employers in other states are enjoying similar rate reduces for the same reasons.
The California Workers’ Comp Insurance Blog sights a profitability report on the insurance industry for this type of insurance: Profits are up.
Even though this rate reduction in California becomes effective in 2020, there are already signs insurance companies are reducing rates for 2019 renewal policies and for 2019 new business.
We have reviewed proposals showing large rate reductions and one wonders how the insurance companies came up with them.
It is too early to know if these actions are just a short-term reaction to retain or gain some business, or the beginning a new industry “rate war.” As some have said in the past “enjoy it while you can -but don’t be surprised when the rates swing up again.”
As you may already know, the commissioner’s rate recommendation is advisory and California insurance companies may choose to set their own rates.
For more information about this change, the Workers’ Comp Executive newsletter provides a well written explanation.
California Employer Harassment Training Changes
It looks like some of you may have less to do before the end of this year. Some of the required training for Employers with 5 employees or more has been modified. By January 1, 2020, the training of non- seasonal and part-time employees has been delayed until next year.
Here’s important information from SHRM, a national organization of Human Resource professionals for you to read.
Legislation like this can be very complex so check with your HR adviser about your specific situation.
If you don’t have one, contact me for an introduction.
Risk Management Consultant Moves On
Charles Wilson is one of the most talented professional risk advisers in the insurance community. After a success insurance company executive career, he created RiskSmart Solutions 19 years ago in the San Francisco Bay Area.
Charles has decided to “wrap up the consulting practice.”
Charles has been effective helping employers “identify, prevent, and mitigate all sorts of risks, and then to carefully and cost-effectively “de-mystify” …. insurance protection.” He is hired by employers to provide more objectivity in analyzing the RisksNThreats, and waste, which can affect their profits and ultimate success of their organizations’. Charles does not sell insurance products.
With his thoughtful, thorough, and witty approach Charles has been a valuable resource to all. Best to you Charles as your new future unfolds.