2. California Workers’ Comp Situation Then
• California Business Owners Fear Rising Workers' Compensation Insurance Rates…
“Employers already have seen rates for the system go up 77 percent in the last three
years… insurers have pulled out of the market, and eight have been declared insolvent
in the last two years.” The Sacramento Bee (April 8, 2002)
• “California's workers' compensation costs are more than twice the national average.
Overall, California businesses paid about $20 billion more in premiums last year (2003)
than in 2000.” The Press‐Enterprise, Riverside, California (February 18, 2004)
• WCIRB Survey Indicates “California Workers' Comp Reform is Working”; Insurance
Journal (October 17, 2005)
• “The Workers Compensation Insurance Rating Bureau estimated its (reform) savings at
$10 billion a year. But employers… are seeing a $14.5 billion annual drop in costs, the
bureau has now calculated.” The Sacramento Bee (October 11, 2007)
7. What Should We Build?
A Smarter Approach
Employee
Work
Employee
• Personalized risk profile
• You + Technology
• Empowered to prevent
injuries and mitigate risk
Work
• Clear, understandable
requirements
• Complete, elemental risk
profile
Connection
• Safe location and equipment
• Comprehensive, impactful training and communication
• Accountable leadership
• Efficient use of resources
• Aligned incentives (+/‐)