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I thought the IJ would do a better job in reporting since it is an “insurance” magazine. To take the lines directly from the CAAA and call this reporting is shameless. Just look at the numbers, they are implying that AIG made 11 BILLION in profits off CA Work Comp. What is really should have said was that AIG as a whole, for all worldwide insurance operations made 11 Billion. Most likely in CA they made a few million, but that wouldn’t look as good to the CAAA trying to get the reforms turned back. Also, what about the figures that state that for AFG, their benefit and claim expenses went down to to just 84.1% leaving a profit of 16%. Two things wrong there, first, have they purposely left out overhead expenses? Maybe with that included, the combined ratio is more like 115%. This would show a loss if it wasn’t for investment income.
The CAAA is nothing but a group of flesh eating virii that need to be eliminated. I can’t believe the IJ is shilling for them.
Not to MENTION the dramatic decrease in commissions allowd the brokers who are both writing AND servicing the injured workers and employers. I am totally amazed we don’t have MORE blood-sucking carriers writing W/C premium in California seeing as the carriers can line their own pockets with profits while raping the injured, employers and brokers out of the monies rightfully DUE them. Next time someone cries about the way carriers are being “financially injured” in this market, remind them of these figures.
Jim: You answered your own question. The reason CA is not flooded with carriers writing WC is because of the risks involved and the costs. If all the WC carriers in CA were actually making this huge profits, there would be a waiting list at the CDI for approval from numerous companies trying to get a piece of the pie. Since there is not, my best guess is that most companies do not believe they can make consistent profit on CA WC.
As far as what you are due in compensation, try negotiating a better deal with them. Not all carriers are horrible to work with.
Gee, where were all you guys when WC were losing money and going insolvent? Does one year of profitability make up for multiple years of losses? What about states that have good WC benefits and lower WC premiums than California? It is possible to do this better than it was being done in California. The California WC system, from the laws to the medical network to the litigation environment was in serious trouble. Anyone who wants to roll back the clock has got a very short memory.
Yes the carriers lost money for about 8 years so alittle profit is good.
Hopefully it will sustain for a few years.
Reading between the lines I interpreted Mr. Schwartz concluding comment as whining that “applicants attorneys are losing their H2′s, RV’s, their second homes . . . because litigation has been drastically reduced. The takeaways from applicants’ attorneys are going directly into insurance companies’ bank accounts. The governor and the legislature have taken away benefits from applicants attorneys, benefits that are already too low.”