Why are Work Comp Rates going Up?
California Work Comp rates are being raised by most insurance companies. Business owners are in a position of trying to deal with declining revenues and increasing costs. In many cases, payroll reductions have actually driven the total insurance premium cost down, but the actual rates on the payroll you have left is going up. Once the California economy turns around, and it will turn around, the rate increases insurance companies are getting now will hit you just when your payrolls are rising.
Why are Work Comp Rates going Up in a Down Economy? Pinnacle Actuarial Resources, Inc. has put some thought into the answer to this question, and published it in their Research Brief linked here: “Competition gone awry” (page 4 of the newsletter).
Please post your comments and thoughts as to why Work Comp rates are going up, and more importantly, what can you do about it?