Callan review finds L&I pools lean on expenses but facing higher loss ratios

Consultants from Callan presented an annual review of the five Labor & Industries pools overseen by WSIB staff, summarizing asset sizes (about $23.2 billion), peer comparisons and fund performance.

Kevin Matches and colleagues said L&I’s expense ratio is an outlier on the low side compared with peers, describing the operation as "very lean," while the combined ratio was higher this year primarily because of an increased loss ratio. Callan also noted that Washington uses statutory (book‑value) accounting, which supports a higher fixed‑income allocation and influences comparative metrics.

The presentation described long‑term targets (including a planned increase to about 5% real‑estate allocation from ~1.3%) and that the funds generally outperformed fixed‑income benchmarks over the past year. Trustees discussed case‑load and service implications; one trustee noted legislative work to reduce claim‑manager caseloads to improve service to injured workers.