Workers' comp costs, losses declined by 21% annually - Silicon Valley/San Jose Business Journal:

Workers' comp costs, losses declined - Silicon Valley/San Jose Business Journal:: "Workers' comp costs, losses declined
Silicon Valley/San Jose Business Journal - 1:58 PM PDT Friday
by Kelly Johnson

California's workers' compensation system continues to look better than it did a few years ago, with lower costs and smaller losses, an industry group said this week.

California written premiums reported for the first half of 2006 was $9 billion, 21 percent below that of the first half of 2005, according to the Workers' Compensation Insurance Rating Bureau of California, which tracks trends in the mandatory insurance program to assist workers injured on the job and advises the state.

On average, employers paid $3.75 per $100 of payroll for workers' comp coverage for the first half of 2006. That was 30 percent below the average rate charged for the first half of 2005, the rating bureau found, and 42 percent below the second half of 2003. July 1, 2003 is considered to be the high point for workers' comp system costs, before system reforms starting kicking in.

Insurers spent 44 cents on claims of every dollar of premium collected. That's 12 cents below the loss ratio for the first half of 2005, and down 10 cents from last year. For all of 2005, insurers spent 79 cents on claims and expenses for every $1 of premium, which was "