WCIRB Releases Report on Losses and Expenses For Calendar Year 2012
The WCIRB has released its report on workers' compensation losses and expenses for 2012. The report is prepared annually pursuant to Section 11759.1 of the California Insurance Code.
Among the findings included in the report:
- Medical losses paid in 2012 were $4.8 billion, or 60% of total loss payments. Of these payments, $1.7 billion were paid to physicians for medical treatment, $1.3 billion were payments made directly to injured workers (mostly for future medical), $0.9 billion were paid to hospitals, $0.4 billion were paid to pharmacies, and $0.2 billion were paid for medical-legal reports.
- The total cost of medical cost containment programs in 2012 was $412 million. This compared to $382 million in 2011 and only $226 million in 2006.
- Indemnity benefits paid in 2012 were $3.2 billion, or 40% of total loss payments. Of this amount, temporary disability benefits paid totaled $1.5 billion and permanent partial disability benefits paid totaled $1.3 billion.
- Total insurer losses incurred in calendar year 2012 were $9.2 billion, or 76% of calendar year premium. In calendar year 2011, total insurer losses incurred were $7.7 billion.
- Total loss adjustment expenses incurred in calendar year 2012 were $2.2 billion, which compared to $2.6 billion in 2011. In particular, unallocated loss adjustment expenses declined sharply in 2012.
- The combined loss and expense ratio for calendar year 2012 was 115%. In calendar year 2011, the combined loss and expense ratio was 122%.
To view a copy of the report, click the link below.