San Francisco, CA – The WCIRB has completed its report on statewide workers’ compensation insurer loss and premium experience through June 30, 2015. The major findings of the report include:
- California written premium for the first six months of 2015 is approximately $8.9 billion — approximately 9% above the written premium reported for the first six months of 2014.
- The projected industry average charged rate per $100 of payroll for policies incepting between January 1, 2015 and June 30, 2015 is $3.01. This is approximately 1% above the average rate charged for 2014 and 43% above the average rate charged for 2009, the average rate charged for the first six months of 2015 remains approximately 52% less than the average rate charged for the second six months of 2003.
- The WCIRB projects total ultimate losses and ALAE for accident year 2014 to be $12.8 billion. While approximately 7% above the projection for accident year 2013 and 29% above the projection for accident year 2009, it remains below the highs experienced prior to the 2002 through 2004 reforms.
- The WCIRB projects an ultimate accident year combined loss and expense ratio of 104% for 2014. Of this ratio, 62% is attributable to the indemnity and medical loss ratio and 42% is attributable to the loss adjustment and other expense ratio.
- The WCIRB projects indemnity claim frequency for accident year 2014 to be consistent with the frequency for 2013 but approximately 10% above the frequency for 2009. The frequency increases experienced over the last few years are largely attributed to increases in cumulative injury claims, late reported indemnity claims, claims involving injuries to multiple body parts, and claims from the Los Angeles area. See related report, Analysis of Changes in Indemnity Claim Frequency – January 2015 Update Report (PDF) in the Research and Analysis section of the WCIRB website.
- The WCIRB projects the average cost (or “severity”) of a 2014 indemnity claim to be approximately $85,000, which is moderately higher than the projected severities for the last several accident years.
The full report is available here: CA WCIRB Summary of June 30, 2015 Insurer Experience (PDF) or in the Research and Analysis section of the WCIRB website.
Source: CA WCIRB