Despite Reforms, Frictional Costs Remain High in Workers' Comp System

California’s workers’ compensation system spends 52 cents for every $1 of benefits delivered, more than double the cost of an average comp system, according to the Workers’ Compensation Insurance Rating Bureau’s annual State of the System report released Tuesday. WCIRB officials have cited issues such as complex claims involving permanent disability or cumulative trauma as reasons for the high expenses. They also point to high rates of legal representation, drawn-out claims and a high volume of liens as drivers of loss adjustment expenses, which have remained high...