According to Dave Jones, the California insurance commissioner, the top 100 companies in the state, which make up 96.7 percent of its market, have increased the rates that they have filed by an 2.8 percent average so far this year. The average increase will impact the majority of businesses that are legally required to purchase plans that pay for an injured employee’s medical expenses when the injury occurred while on the job, and that offers compensation for work related disabilities both temporary and permanent. The majority of the policies held…
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Tennessee Legislature to investigate workers’ compensation system
Tennessee’s workers’ compensation insurance system is to be the subject of review this year. State officials, businesses and insurance experts are to examine how the system is working and how it can be improved. Tennessee has seen its fair share of criticism in recent years as several companies claim the state is too unfriendly to business. Governor Bill Haslam has decided to make the workers’ compensation system a primary focus of the state’s Legislature and hopes to solve some of the complaints it has generated in the past. One of…
Read MoreNew task force launched in California to fight against insurance fraud and an underground economy
The California Department of Insurance has announced that it will be joining the Department of Industrial Relations to fight against the state’s emerging underground economy. The two agencies have formed the Labor Enforcement Task Force in order to crack down on the violations against the state’s insurance and labor regulations that are rampant in this offshoot economy. Insurance Commissioner Dave Jones notes that this economy is mostly comprised of businesses who hire employees that are not fit for certain types of work. These businesses often fabricate documents concerning their employees…
Read MoreA.M. Best report highlights the problems facing the nation’s workers’ compensation insurance market
The U.S. workers’ compensation insurance market is in dire straits according to a new report from A.M. Best, an international rating agency. Agency analysts have been examining the effects of competition, rate decreases, economic turmoil and other factors throughout 2010 and have concluded that the market faces challenges times in the coming years. The report highlights the continuation of these trends for some time, but analysts note that the market may see modest growth for the first time since 2005 this year. The problems facing the workers’ compensation sector mirror…
Read MoreNew report shows cost of workers’ compensation dropped during global economic crisis
In 2009, at the start of the global economic crisis, there was a decrease of 4.4 percent in the number of employees who had workers’ compensation coverage. According to a National Academy of Social Insurance report, this drop was the largest in twenty years. The result was that the cost to employers for providing the benefits decreased by 7.6 percent, reaching $73.9 billion that year; which is the most recent year with complete data. This drop closely mirrors the overall decline in employment in the country. According to the chair…
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