The WCIRB has completed its report on statewide workers’ compensation insurer loss and premium experience through September 30, 2017. The major findings of the report include:
- California written premium for the first nine months of 2017 is $13.5 billion, which is 4% below the written premium reported for the first nine months of 2016.
- The projected industry average charged rate per $100 of payroll for policies incepting in the first nine months of 2017 is $2.47, which is 17% below the average rate charged in 2015.
- The WCIRB projects an ultimate accident year loss and ALAE ratio of 66.7% for accident year 2016, which is slightly below the projections for the prior two accident years as well as the projections based on June 30, 2017 experience as a result of favorable loss development experienced in the third quarter of 2017.
- The WCIRB projects an ultimate accident year combined loss and expense ratio of 90% for 2016, which is generally consistent with the ratios for the prior two accident years, which represent the lowest combined ratios since the 2004 through 2006 period.
- The WCIRB projects indemnity claim frequency for accident year 2016 to be approximately 1% below the frequency for 2015 but 10% above the frequency for 2009. The projected indemnity claim frequency for the first nine months of 2017 is approximately 1% higher than that for 2015.
- The WCIRB projects the average cost (or “severity”) of a 2016 indemnity claim to be approximately $78,000, which is 2% higher than the projected severity for 2015. Total claim severity growth over the last several years has been relatively modest.
The full report is available in the Research section of the WCIRB website (wcirb.com) or by clicking here: CA WCIRB Report on September 30, 2017 Insurer Experience (PDF)
The WCIRB has also released exhibits from its annual large deductible experience study in Excel format. The exhibits, which include several development and severity triangles as of December 31, 2016 for large deductible and non-large deductible experience, is available in the Research section of the WCIRB website (wcirb.com) or by clicking here: CA WCIRB: Large Deductible Analysis Exhibits – As of December 31, 2016
Source: CA WCIRB