Straight from the desk of the WCIRB, 40% of work comp losses are for indemnity payments. It’s time to get focused on reducing this cost.
The WCIRB has released its report on workers’ compensation losses and expenses for 2014. The report is prepared annually pursuant to Section 11759.1 of the California Insurance Code.
Among the findings included in the report:
- Medical losses paid in 2014 were $5.0 billion, or 60% of total loss payments. Of these payments, $1.4 billion were paid for physician services, $1.2 billion were payments made directly to injured workers (mostly for future medical), $0.6 billion were paid to hospitals, $0.4 billion were paid for pharmaceuticals, and $0.3 billion were paid for medical-legal evaluations.
- The total cost of medical cost containment programs in 2014 was $471 million compared to $447 million in 2013.
- Indemnity benefits paid in 2014 were $3.4 billion, or 40% of total loss payments. Of this amount, temporary disability benefits paid totaled $1.6 billion and permanent partial disability benefits paid totaled $1.4 billion.
- Total insurer losses incurred in calendar year 2014 were $11.1 billion, or 68% of calendar year premium. In calendar year 2013, total insurer losses incurred were $10.3 billion, or 72% of calendar year premium.
- Total insurer loss adjustment expenses incurred in calendar year 2014 were $2.9 billion compared to $2.6 billion in 2013.
- The combined loss and expense ratio for calendar year 2014 was 104%. In calendar year 2013 the combined loss and expense ratio was 108%.
To view a copy of the report, click the link below.