Archive for June 26, 2012

WCIRB Releases Expenses and Losses Report

San Francisco, CA June 26, 2012 – The WCIRB has released its report on workers’ compensation losses and expenses for 2011. 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 2011 were $4.4 billion, or 60% of total loss payments. Of these payments, $1.5 billion were paid to physicians for medical treatment, $1.1 billion were paid to hospitals, $1 billion were payments made directly to injured workers (mostly for future medical), $0.4 billion were paid to pharmacies, and $0.2 billion were paid for medical-legal reports.

The total cost of medical cost containment programs in 2011 was $384 million. This compared to $356 million in 2010 and only $197 million in 2005.

Indemnity benefits paid in 2011 were $3.0 billion, or 40% of total loss payments. Of this amount, temporary disability benefits paid totaled $1.5 billion and permanent partial disability benefits paid totaled $1.2 billion.

Total insurer losses incurred in calendar year 2011 were $7.7 billion, or 74% of calendar year premium. In calendar year 2010, total insurer losses incurred were $7.1 billion.

Total loss adjustment expenses incurred in calendar year 2011 were $2.6 billion, up from $1.9 billion in 2010. Both allocated and unallocated loss adjustment expenses increased sharply in 2011.

The combined loss and expense ratio for calendar year 2011 was 122%. In calendar year 2010, the combined loss and expense ratio was 117%.

To view a copy of the report, click the link below. WCIRB Expenses and Losses Report: 2011