This open mic session at the California Workers Comp & Risk Conference in Dana Point featured insurance industry leaders identifying emerging market trends that are important to employers in California.  Panelists included moderator Pamela Ferrandino, National Practice Leader at Willis North America, Bill Rabl, Chief Operating Officer at ACE Risk Management, Robert Darby, President at Berkshire Hathaway Homestate Companies and Former Chairman of WCIRB, Duane Hercules, President at Safety National, and Michele Tucker, Vice President at CorVel. 

The panelists indicated that their short-term outlook on rates was flat to slightly higher, but not as high as seen over the last couple of years.  There are more carriers entering the California marketplace, which is leading to more competition for first-dollar accounts.  From the self-insured and large deductible standpoint, the amount retained by the employer with a deductibles or self-insured retentions tends to be more important than the rate because the goal of these loss-sensitive programs is for the carrier to only attach on unusual claims such as catastrophic injuries. 

Managing medical costs also continues to be a challenge.  Opioids are still driving costs, so there must be an aggressive pharmacy management program in place.  The industry is starting to see complications such as organ damage arise from extensive opioid abuse.  This could become a cost driver in the future.  Almost half the opioids in California are physician dispensed, so it may be necessary to address this issue legislatively as other states have done.