What’s Behind State’s Workers’ Comp Woes?
I find it remarkable that the insurance industry is coming off unscathed in this current workers’ compensation debacle.
The situation is so comparable to 1975, when I was public relations counsel to the California Trial Lawyers Assn., and we discovered the real reason why that selfsame insurance industry had implemented excessive and apparently unwarranted premium increases on medical malpractice insurance that were threatening to drive doctors out of state or out of practice.
It was not that their underwriting costs had increased. It was because the year before, they had lost millions of dollars in reserves in a downturned stock market and needed an infusion of income to balance their books. And that was according to testimony by a vice president of one of the leading insurance firms.
Does the situation sound terrifyingly familiar? Is anyone asking the underwriters the right questions?
Roger Beck
Chino Hills
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
