September 2012 California Gov. Jerry Brown signed comp reforms into law , saying they will reverse a four-year trend of rate increases. News reports followed stating employers can expect to see substantial savings from these reforms.Yet insurers continue to submitting filings with the California
Department of Insurance seeking rate increases for 2013. Mark Zwickel of Lockton Insurance shared his belief that the overall there is a great deal of confusion because of conflicting messaging being delivered out in the marketplace from a variety of sources. But it’s clear that insurers are attempting to offset combined ratios averaging 138% for California workers comp business by raising their renewal prices, sometimes by eliminating scheduled credits they previously gave their policyholders, according to brokers and underwriters.
“The combined ratios are extremely high, and investment income is extremely low, and every carrier is saying they need rate,” Mr. Zwickel said.