Calif Workers' Compensation Institute

What it reported doing in 2024

The California workers' compensation institute (cwci) has 23 member insurers (approximately 76% of ca workers' compensation market) and 29 associate members (self-insureds). Cwci's primary function is to generate reliable, objective data that can be used to identify and monitor systemwide trends, and to analyze key issues of interest to the workers' compensation community and public policymakers. Towards that end, in 2024, cwci's major accomplishments included: 1) produced and distributed over 300 plus publications including bulletins, research reports, executive memos, executive briefings, significant decision, regulatory comments, and regulatory tracker, which are all available to cwci member company employees by logging on to the website - www.cwci.org with their username and password; 2) conducted educational program on the annual workers' compensation case law: 2024 update; 3) filed amicus brief; 4) presented (virtual) cwci research at numerous member-relations meetings, public hearings, industry meetings and forums; and 5) processed and shipped 256 orders of pamphlets, posting notices, claim forms, research studies, and seminar manuals. In addition, cwci enhanced its unique six interactive data applications five only available to its members, and one app to the public. The public application allows users to examine data on covid-19 and non-covid-19 claims in the California workers' compensation system. The member applications use data from cwci's industry research information system (iris) to provide information on claim payment trends, regional variation, and medical utilization. Cwci continues to assist its members in assessing their operations compared to the industry as a whole. The organization has a board of directors, executive committee, audit committee, nominating committee, and three standing committees (claims, medical care, and legal committees), which typically meet on a quarterly basis.

Financial Efficiency

• Mission deployment rate: Limited
• Program expense ratio: Limited
• Fundraising efficiency: Limited

Transparency & Controls

• Consistency checks: 100%; rating input score 100; 63rd percentile among comparable filings
• Pay-setting controls: 2 of 6 controls in place; rating input score 33
  • Compensation committee: Missing
  • Independent consultant: Missing
  • Other Form 990s reviewed: Missing
  • Written employment contract: Missing
  • Compensation survey or study: Pass
  • Board or committee approval: Pass
• Foreign activity oversight: Limited
• Grant itemization coverage: Limited
• Major donor itemization: Limited
• Related-party transparency: Limited

Accountability

• Independent voting board: 100%; rating input score 100; 63rd percentile among comparable filings
• Governance controls: 9 of 9 controls in place; rating input score 100
  • Conflict-of-interest policy: Pass
  • Whistleblower policy: Pass
  • Document-retention policy: Pass
  • CEO compensation review process: Pass
  • Other executive compensation review process: Pass
  • Form 990 shared with the board: Pass
  • Board meeting minutes documented: Pass
  • Audit committee oversight: Pass
  • Independent financial-statement audit: Pass

Sustainability

• Operating margin: -0.5%; rating input score 31; 31st percentile among comparable filings
• Total-asset coverage ratio: 2.64; rating input score 70; 70th percentile among comparable filings
• Liabilities to assets ratio: 0.5; rating input score 21; 21st percentile among comparable filings
• Officer compensation ratio: 55.7%; rating input score 1; 1st percentile among comparable filings

Growth

• Program expense growth: Limited
• Revenue growth: 3.1% per year; rating input score 100; 28th percentile among comparable filings
• Asset growth: 6% per year; rating input score 100; 40th percentile among comparable filings