WCIRB: Los Angeles Workers’ Comp Claims Outlier in California

November 6, 2015

California’s Workers’ Compensation Insurance Rating Bureau released a study on Friday showing significant differences in the costs of claims among the state’s regions – particularly Los Angeles.

The WCRIB Study, Geographical Differences in Workers’ Compensations Claim Costs, shows the Los Angeles region “experiences significantly higher claim frequency relative to the rest of California.”

The Silicon Valley and San Francisco Bay Area regions experience lower claim frequencies.

Claim frequencies for Los Angeles are higher than the statewide average while claim frequencies for the Bay Area are lower, a new report shows. Source: California's Workers' Compensation Insurance Rating Bureau
Claim frequencies for Los Angeles are higher than the statewide average while claim frequencies for the Bay Area are lower, a new report shows.
Source: California’s Workers’ Compensation Insurance Rating Bureau

The study controls for wage level differences and industrial mix. It also found that claim severities tend to be higher in the Central Valley and many of the urban coastal areas, but lower in the more remote, rural areas of the state.

The Study examines geographical differences in:

  • Indemnity frequency
  • Total frequency
  • Incurred indemnity on indemnity claims
  • Median injured workers’ average weekly wages
  • Incurred medical on indemnity claims
  • Cumulative injury and occupation disease claims

The study a mapping of ZIP codes to the study’s regions are available on the WCIRB website in the Research and Analysis section.

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