Oakland, CA – The WCIRB has completed its report on statewide workers’ compensation insurer loss and premium experience through June 30, 2016.
The major findings of the report include:
- California written premium (gross of deductible credits) for the first six months of 2016 is approximately $9.5 billion, which is 7% above the written premium reported for the first six months of 2015.
- The projected industry average charged rate per $100 of payroll for policies incepting between January 1, 2016 and June 30, 2016 is $2.90, which is 5% below the average rate charged for the first six months of 2015.
- The WCIRB projects an ultimate accident year combined loss and expense ratio of 99% for 2015, which is consistent with the ratio for 2014 and these ratios represent the first projected accident year combined ratios below 100% since 2007.
- The calendar year combined loss and expense ratio for 2015 reported by insurers is 99%, which is below the combined ratios for the last several years and is the first year since 2007 with a combined ratio below 100%.
- The WCIRB projects indemnity claim frequency for accident year 2015 to be 0.2% below the frequency for 2014 but 14% above the frequency for 2009. The frequency increases generally experienced over the last five 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 Basin area. The projected indemnity claim frequency for the first six months of 2016 is 0.5% above that for 2015, indicating that a return to the historical long-term pattern of declining claim frequency may not be imminent.
- The WCIRB projects the average cost (or “severity”) of a 2015 indemnity claim to be 4% higher than the projected severity for 2014 and 7% higher than that for 2013. The projected average medical cost of a 2015 indemnity claim is 9% below the projected average medical cost for 2011, largely a result of medical cost savings arising from SB 863. However, the projected average ALAE cost of a 2015 indemnity claim is 20% higher than the average ALAE severity for 2012, despite forecast reductions in ALAE costs expected to arise from SB 863.
WCIRB Research Forum
The WCIRB will hold a WCIRB Research Forum webinar to discuss the Report findings as well as the WCIRB’s evaluation of the recently enacted Senate Bill No. 1160 and Assembly Bill No. 1244.
Date: Thursday, October 13, 2016
Time: 11:00AM PT
Register here: https://attendee.gotowebinar.com/register/3423455175161854721
For those unable to attend the live webinar, a recording will be posted in the Research and Analysis section of the WCIRB website following the event.
Source: CA WCIRB