Our roadmap to success: Aligning people, priorities, and progress for the year ahead.
The Enterprise Strategy sets annual goals and provides a roadmap for delivering results to policyholders and injured workers. Developed by the Executive Committee and senior leaders each fall and shared early in Q1, it guides progress tracked by the Strategy Office through quarterly reports presented at All-Hands and Board meetings.
Strategic Objective I – Culture
Objective: Foster a culture that is customer-centric, employee-powered, quality and results-oriented.
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Goals |
Success Measures |
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Employee-Driven Culture Cultivate the work environment to empower State Fund to serve California businesses and injured workers |
Exceed external Finance and Insurance Industry benchmark for overall Employee Engagement score |
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Attract, Develop and Retain Talent Recruit and retain talent to build the necessary bench strength and prepare State Fund for the future |
Controllable separations < 5% |
Strategic Objective II – Claims Performance
Objective: Serve California employers and injured workers by paying what we owe, defending what we don’t, and doing it with urgency.
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Goals |
Success Measures |
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Quality Claims Product Continuously improve Claim and Legal quality |
Quality Claims Review score ≥ 90% Quality Legal Review score ≥ 90% by year-end 2026 |
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Excellent Claims Service Provide excellent Claims service and deliver great customer experiences |
Timeliness of injured worker initial contact within 48 hours ≥ 95% UR timeliness ≥ 97% IMR timeliness ≥ 99.8% ≥ 93% for quality results of claim intake/initial liability decisions ≥ 95% IFRs completed in 10 business days IFR/Quality Legal Review score ≥ 90% |
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Claims Expense Management Effectively manage workforce, expenses, and reduce average claim duration |
Unit cost per claim or achieve an acceptable controllable unit cost level increase (above the goal) of $3 per claim for every additional incremental reduction of 100 weighted claims beyond the forecast: Q1 $1,079 Q2 $1,113 Q3 $1,122 Q4 $1,130 |
Strategic Objective III – Policy Performance
Objective: Provide customer-friendly, high-quality, and efficient services that help California businesses improve workplace safety and reduce overall cost of risk.
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Goals |
Success Measures |
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High-quality Policy Services Provide high-quality Policy Services |
Policy File Review Score: - Overall PFR score results of 90% or better (old scoring method) - Overall PFR score results of 72% or better (new scoring method) Safety & Health Services: - Loss Prevention Quality ≥ 2.25 - Loss Prevention Productivity ≥ 2.75 - Loss Prevention Document Timelines ≥ 1.85 - Premium Audit Review Quality ≥ 82% |
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Optimize Resources to Create Long-Term Value Lower loss ratios by utilizing all available pricing tools |
Accident Year Loss Ratio ≤ 79% |
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Deliver Great Customer Experiences Improve Policy Service offerings to attract and retain business |
Policy Service Center Customer Satisfaction and Effort Index ≥ 78% New Business Post-Chat Survey ≥ 4.0 Service Post-Chat Survey ≥ 4.0 |
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Policy Expense Management Effectively manage workforce and expenses |
Policy expense ratio ≤ 9.65% (excluding Safety Grant Funds) |
Strategic Objective IV – Customer Value
Objective: Create a customer experience that drives customer loyalty with State Fund.
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Goals |
Success Measures |
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Deliver Customer Convenience Improve processes and capabilities to enable easy selling and servicing |
Policyholder Customer Effort Score ≥ 70% |
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Deepen Relationships with Customers Produce great customer experiences and foster a customer-centric culture |
Policyholder Customer Satisfaction ≥ 70% Policyholder Likelihood to Renew ≥ 80% |
Strategic Objective V – Financial Health
Objective: Create a financial structure that reduces dependence on investment income.
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Goals |
Success Measures |
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Operate Efficiently Optimize resources to create long-term value |
Combined Ratio ≤ 162.3% Operating Ratio ≤ 94.0% |
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Adequate Financial Structure Maintain long-term solvency |
Maintain adequate reserves (verified by Milliman) Maintain adequate surplus based on ORSA |