WCIRB: Los Angeles Workers’ Comp Claims Outlier in California

California’s Workers’ Compensation Insurance Rating Bureau released a study in November showing significant differences in the costs of claims among the state’s regions – particularly Los Angeles.

The WCRIB Study, Geographical Differences in Workers’ Compensations Claim Costs, shows the Los Angeles region “experiences significantly higher claim frequency relative to the rest of California.”

The Silicon Valley and San Francisco Bay Area regions experience lower claim frequencies.

The study controls for wage level differences and industrial mix.

It also found that claim severities tend to be higher in the Central Valley and many of the urban coastal areas, but lower in the more remote, rural areas of the state.

The Study examines geographical differences in:

• Indemnity frequency
• Total frequency
• Incurred indemnity on indemnity claims
• Median injured workers’ average weekly wages
• Incurred medical on indemnity claims
• Cumulative injury and occupation disease claims