Preferred Employers Insurance has promoted Lorena Hawkins (pictured) to assistant vice president of underwriting.
Hawkins has more than 12 years of experience in underwriting, operations and team leadership. She brings multi-line commercial underwriting expertise, talent development credentials and a track record in portfolio performance analysis and process improvement.
In her new role, she will oversee the strategic direction and day-to-day management of Preferred's core and middle-market underwriting segments, leading initiatives to strengthen portfolio performance, refine distribution strategies and improve the overall customer experience.
“Lorena’s leadership strengthens our commitment to providing California employers with high quality underwriting and service,” said Eric Hansen, senior vice president of Preferred Employers Insurance. “Her depth of industry knowledge and thoughtful approach to problem solving will support our continued growth while ensuring we remain focused on our core purpose of serving as California’s preferred workers' compensation provider.”
Hawkins steps into the AVP role as California workers’ compensation carriers face a notable deterioration in profitability after an extended period of relatively benign conditions.
According to the Workers’ Compensation Insurance Rating Bureau of California (WCIRB), the projected combined ratio for 2024 rose to 123%, about nine points higher than 2023 and the highest level in 14 years, driven by higher average medical costs, rising allocated loss adjustment expenses, and an uptick in indemnity claim frequency. Subsequent analysis of WCIRB data indicated the statewide combined ratio ultimately moved closer to the mid‑120s, implying that, on average, carriers are paying out substantially more in losses and expenses than they collect in premium before investment income.
In response, Insurance Commissioner Ricardo Lara approved a new average advisory pure premium rate effective Sept. 1, 2025, representing an 8.7% increase over the prior benchmark and marking the first hike after more than a decade of generally flat or declining recommended rates. While advisory rates are not mandatory, they serve as an important reference point for carrier pricing decisions and signal regulatory recognition that system costs are rising.
After years of decreasing average charged rates, WCIRB data have also pointed to early signs of firming in the marketplace, with average charged rates in early 2025 edging higher than 2024 levels. At the same time, direct written premium in California workers’ compensation has remained in the roughly $11 billion to $12 billion range, leaving a large exposure base to medical inflation, litigation trends, and frictional costs.
For a focused writer like Preferred, the shift in fundamentals raises the stakes on segmentation, underwriting discipline, and claims management. The company’s model places emphasis on proactive workplace safety support, a directly contracted medical provider network, and close claims oversight as levers to manage total cost of risk for insureds.
Within that context, Hawkins’ mandate to sharpen portfolio performance and refine distribution is likely to be closely watched by brokers and employers. With advisory benchmarks moving up but competition still intense, carriers are under pressure to push rate where warranted, adjust appetite for underperforming classes, and avoid trading margin for top-line growth in sectors most exposed to rising medical and legal costs.
For intermediaries, the promotion signals that Preferred is doubling down on a data-driven, performance-focused underwriting approach in its core California segments. In a state where workers’ compensation system costs are climbing and regulatory scrutiny remains high, a clear and consistent underwriting strategy from a specialist carrier may become an increasingly important differentiator for employers seeking stability after years of relatively soft conditions.
