On Aug. 5, the Workers' Compensation Insurance Rating Bureau of California (WCIRB) released its first-ever “State of the System” report, offering an outstanding, in-depth look at the trends and cost drivers in California workers' compensation. I encourage you to read the full report HERE. Given that California now constitutes 25% of the total nationwide workers' compensation premiums, these issues have a significant impact on larger employers that do business in the state.

I have been involved with California's workers' compensation system for years, including participating in many discussions on potential legislative reforms. One thing I have always found frustrating is that California has a tendency to evaluate its progress on workers' compensation issues based on its history alone, without comparing itself to other states. That's why I found the most compelling information in the report to be the comparative analysis of California to other jurisdictions. It didn't paint a pretty picture.

According to 2009 data, California ranks eighth in indemnity claim frequency per 1,000 employees—more than 46% higher than the median state. The recent trending makes this even more troubling since, in 2009, the nationwide trend has been a decrease in frequency rates while California has been increasing.