Todd Ewing

🚨 California Workers’ Comp Alert 🚨 California Insurance Commissioner Ricardo Lara just approved an 8.7% increase in the Workers’ Compensation advisory pure premium rate — the first meaningful hike in over a decade. What does this mean for business owners? 🔺 Medical costs are climbing 🔺 Cumulative trauma claims are rising 🔺 Carrier loss ratios are at a 15-year high (123% in 2024) This is a clear sign: The California Workers’ Comp market is hardening. If your business is still hoping your broker will “shop it around” and get a better deal… it’s time to rethink that strategy. 📈 Premium costs are going up. 🦺 Only well-managed risks will have solid options. At Core Brokers, we help our clients take control of their risk profile, not just react to a tough market. Now more than ever, it’s time to turn your insurance spend into an ROI. 👉 Reach out to learn how we help businesses navigate what’s ahead.

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📈 Rising Wage & Hour Claims in California: What’s Driving the Surge in 2025–2026 California employers are facing a sharp rise in wage-and-hour disputes—driven by aggressive minimum wage hikes, stricter classification rules, and expanding enforcement powers. From class actions to PAGA claims, the legal landscape is shifting fast. 🔍 Key Drivers Behind the Surge: 1️⃣ Minimum Wage Increases Statewide minimum wage hits $16.90/hour on Jan 1, 2026—raising exempt salary thresholds and multiplying liability for underpayments. 2️⃣ Misclassification Risks Exempt salary minimums jump to $70,304/year—and even small shortfalls can trigger four years of back pay claims. 3️⃣ Industry-Specific Mandates Fast food under AB 1228 now faces a $20/hour minimum, pushing exempt thresholds to $83,200/year and fueling wage theft allegations. 4️⃣ Expanded Enforcement New laws like SB 648 empower the Labor Commissioner to pursue gratuity violations and back wages more aggressively. 5️⃣ Legal Precedents Recent rulings eliminate “good faith” defenses and tighten arbitration compliance—raising litigation risks across sectors. 6️⃣ PAGA Claims Are Surging As wage thresholds rise, more workers fall into high-risk categories—driving larger penalties and broader litigation. 7️⃣ Multi-Location Employers at Risk Jurisdictional wage differences (e.g., SF, LA, Emeryville) create audit traps for employers with inconsistent payroll systems. ⚠️ Bottom Line: By 2026, California will be one of the most complex wage-and-hour environments in the country. Employers must proactively audit pay practices, classification standards, and location-based compliance to avoid costly litigation. 💬 Let’s talk strategies for staying ahead of the curve. How is your organization preparing?

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The California workers' compensation insurance market, the largest in the nation, has reached a critical and perilous inflection point. After years of intense competition that drove rates to historic lows, the system is now confronting a severe profitability crisis that threatens its stability and the availability of coverage for millions of California employers. #beprepared #planahead #avoidscams #controlyourowndestiny

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I’ve been reflecting on a question I get a lot on why California has leaned so heavily on fully-insured health plans for decades — and where things are headed next. California remains an outlier, which is surprising given the size of our workforce and the number of large employers here. Nationwide, about 65% of employees are in self-funded plans; in California, it’s under 50%. That’s largely the result of decades of low pooled Kaiser and BUCA HMO-driven insured rates that made sticking with the status quo feel easy and affordable. Some employers — especially those in high-margin industries — simply didn’t feel the financial pressure to change and never prioritized the switch. But that model is starting to crack: • Capitation rates for 2026 are projected to climb, often in the double digits. • HMO renewals now face the same trend pressures as PPOs. • Employers in pooled insured products have little to no visibility or control over the true cost of care. • HMO member satisfaction is slipping as carriers push providers to see more patients in less time — and many providers are incentivized to refer to higher-cost specialists for bigger RVUs. • CEOs, CFOs, and HR leaders are feeling fiduciary pressure to move beyond “hands-off” funding strategies and stop shifting costs onto employees. At the same time, many leading California health systems already partner with employers through onsite clinics, bundled procedures, and preferred-access programs — and they’re eager to expand this volume-driven approach across their full range of clinical services. Direct contracting isn’t new, but both sides see growing value in strengthening these partnerships, and employer demand is accelerating. For many leaders, changing funding models or long-term strategy feels like a heavy lift. In reality, the right consultant or advisor can map out a smooth transition — often unlocking meaningful first-year savings and putting the plan on a predictable cost curve, rather than accepting the myth that a “low” double-digit renewal is a good deal. Self-funding — paired with strong stop-loss protection, transparent PBM contracts, and direct-to-provider relationships — offers: • Heightened employee experience and predictable costs before care is delivered, bringing true consumerism to health care — something HSAs tried but missed the mark on. • Clear visibility into what drives spend. • Flexibility to adopt value-based solutions. • Better cost and contract governance to bend the trend curve over time — and protection against rising fiduciary liability risks. 2026 may be the tipping point. Employers who start exploring self-funded strategies now will be better positioned to protect both their budgets and their people from another year of steep increases. Fully-insured comfort has a cost. It’s time to rethink the model.

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California Workers’ Comp Rates Are Going Up For the first time in a decade, California is raising its workers’ compensation advisory pure premium rates—by 8.7%, effective September 1, 2025. Insurance Commissioner Ricardo Lara’s late Friday approval signals a shift in market tone. The Department’s actuary is urging stricter underwriting discipline, which likely means: ✅ Fewer carrier discounts ✅ Tighter schedule rating ✅ Less flexibility for brokers This could hit staffing and labor-intensive industries hardest. Now’s the time for employers to explore alternative WC structures risk and claims strategy. #WorkersComp #CaliforniaInsurance #RiskManagement #StaffingIndustry #InsuranceNews #WorkersCompensation https://lnkd.in/gvSRKa_f

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Mid-Year 2025 Insurance Update: California in Focus Proactive risk management and strategic insurance planning are crucial in today’s business landscape, particularly in California. Staying informed and proactive can safeguard your business, mitigate risk costs, and enhance long-term resilience. California's insurance market remains dynamic and closely monitored nationwide. As we approach the mid-year point of 2025, CEOs, CFOs, and business owners are maneuvering through a complex environment marked by fluctuating rates, limited capacity, and increasing carrier exits. Quick Recap of Key Trends: 🔥 Property Market Challenges: - Wildfire risks and regulatory complexities are dampening carrier interest. - National carriers are withdrawing from the commercial property sector in significant California regions. - Options in the admitted market are narrowing, leading to growth in non-admitted/E&S placements. - Rate hikes in CAT-exposed areas like wine country and SoCal canyons range from +15% to +40%, irrespective of clean loss records. 🏢 Commercial Real Estate Dynamics: - Vacant or partially occupied buildings are facing heightened scrutiny. - Urban vacancies in cities like San Francisco and Los Angeles are impacting underwriting decisions. - High-rise, mixed-use, and older properties now encounter coverage limitations and increased deductibles. - Carriers are requesting detailed COPE data and recent valuations for assessments. ⚖️ Liability & Litigation Environment: - California retains its status as a high-severity liability jurisdiction. - Rising social inflation and substantial verdicts are propelling liability rates up by 8–12%, notably for EPLI and D&O. - Sectors like hospitality, real estate, and healthcare are experiencing heightened insurance pressures. - Insurers are either reducing capacity or instituting quota-share programs for risk management. 🌀 CAT Capacity Constraints: - Climate-related capacity constraints persist, influencing reinsurers' caution regarding CAT risks in California. - Buyers are increasingly turning to E&S carriers due to earthquake, wildfire, and flood exposures. ✅ Strategic Takeaways ·        Start Early: Carriers are slower to quote and more selective. ·        Documentation Matters: Clean submissions with risk mitigation evidence perform better. ·        Explore Alternatives: E&S markets, captives, and parametric options are now essential tools. ·        Stay Agile: Market volatility demands flexible placement strategies. Need help navigating California’s commercial insurance market? Let’s talk strategy. Mid-year is the right time to regroup, recalibrate, and reduce risk moving into Q4. #CaliforniaInsurance #MidYear2025 #RiskStrategy #CommercialProperty #WildfireRisk #EPLI #CyberCoverage -

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