Study: Los Angeles Has Highest Workers’ Comp Claim Costs in California

The Los Angeles area continues to be a drag on California’s overall workers’ compensation costs, according to a study out today from the Workers’ Compensation Insurance Rating Bureau.

The WCIRB’s study on regional differences in California workers’ comp claim costs and frequency is titled: “The 2016 Study of Geographic Differences in California Workers’ Compensation Claim Costs.”

The study, which controls for wage level differences and industrial mix, includes nine maps illustrating regional differences. Click here to be taken to a portal where the map can be downloaded.

Key findings of the study include:

wcirb-claims-map

Even after controlling for wage level and industrial mix, significant differences among California regions were observed in the study.

Indemnity claim frequencies in the Los Angeles/Long Beach area were 24.0 percent higher than statewide, while indemnity claim frequencies were 25.8% lower than statewide in Silicon Valley.

“The Los Angeles/Long Beach area has the highest share of indemnity claims, 39.0 percent, compared to a statewide average of 35.2 percent, and the highest share of all claims that are cumulative trauma, 8.3 percent, compared to a statewide average of 5.2 percent at first report,” the study states.