Bulletin No. 07-05
February 16, 2005

DWC posts workers' compensation insurance rate studies on line
Groups submitting proposals to study the effects of reforms on workers' comp rates should review these reports

The Division of Workers' Compensation today posted volumes one through five of the Workers' Compensation Rate Study Commission of 1992 report. Prospective bidders who respond to the division’s “Request for Proposal” (RFP) on SB 899 insurance study will need to review the report as part of their work approach. Providing access to the report – which is not widely available – at this juncture allows prospective bidders the opportunity to review the report they’ll have to evaluate if they submit the winning bid.

Another study of the workers' compensation insurance market and recent trends, done for the Commission on Health and Safety and Workers' Compensation by the Hays Group, is also available for review by clicking here.

As part of Senate Bill (SB) 899, a study was authorized to look at the cost impacts of recent California workers' compensation reforms, and the extent to which savings generated by the reforms were being reflected in employers' premium rates (Labor Code Section 138.65). The intent of the study is to look at the effects of the reforms on the insurance marketplace and competition. A final report to the Legislature, governor and insurance commissioner is due Jan. 1, 2006. The governor and insurance commissioner will review the results of the study and make recommendations as to the appropriateness of regulating insurance rates. Study proposals are due Mar. 10, 2005.

Each of the following essential elements of the study is discussed in the RFP:

Key action dates listed in the RFP are as follows:

Event Date
RFP available to prospective proposers Jan. 26, 2005
Written question submittal deadline Feb. 11, 2005
Issue response to questions Feb. 16, 2005
Pre-proposal conference (attendance optional) Feb. 22, 2005
Final date for proposal submission Mar. 10, 2005 @ 4:30 p.m.
Bid opening Mar. 16, 2005
Notice of intent to award Mar. 17, 2005
Last day to protest award Mar. 24, 2005
Proposed start of the contract Apr. 15, 2005

All volumes of the Workers' Compensation Rate Study Commission report are posted below and can be reviewed using Adobe Acrobat’s free Reader program. Some of the files are very large and may take several minutes to download, depending on the speed of your computer and Internet connection:

The full "Request for Proposals" (RFP DIR/DWC 04-001) can be reviewed at http://www.dir.ca.gov/dwc/SB899_InsuranceStudy.pdf. Contract questions should be directed to the Department of Industrial Relations contract office at 415-703-1605 (Alan Lo) or 703-4912 (Aurora Tison, atison@dir.ca.gov).

Workers’ Compensation Rate Study Commission report
Volume I ( 9MG)
Volume II ( 20MG)
Volume III ( 22MG)
Volume IV ( 10MG)
Volume V ( 24MG)

Hays Group study of the California workers' compensation insurance market