Oakland, CA – The WCIRB has completed its report on statewide workers’ compensation insurer loss and premium experience through September 30, 2016. The major findings of the report include:
- California written premium (gross of deductible credits) for the first nine months of 2016 is approximately $14.1 billion, which is 5% above the written premium reported for the first nine months of 2015.
- The projected industry average charged rate per $100 of payroll for policies incepting between July 1, 2016 and September 30, 2016 is $2.65. This is 7% below the average rate charged for the first six months of 2016 and 13% below the average rate charged for the first six months of 2015.
- The WCIRB projects total ultimate losses and allocated loss adjustment expense (ALAE) for accident year 2015 to be $12.4 billion, which is 6% above the projection for accident year 2014 and 31% above the projection for accident year 2009.
- 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 increase experienced since 2009 is 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 nine months of 2016 is 1.5% below that for 2015.
- The WCIRB projects the average cost (or “severity”) of a 2015 indemnity claim to be approximately $81,000, which is 3% higher than the projected severity for 2014 and 6% higher than that for 2013. The projected average medical cost of a 2015 indemnity claim is slightly above that for 2014 but is 10% below the projected average medical cost for 2011, largely a result of medical cost savings arising from SB 863.
Source: CA WCIRB