Today’s issue of WorkCompRecap features the California WCIRB’s release of its 2022 State of the System report, which highlights key metrics of the California workers’ compensation system, including the latest trends on rates, market characteristics and profitability.
Key findings included that premium levels dropped sharply in 2020 due to continued insurer rate decreases and the pandemic-related economic slowdown, while in 2021 the premium level was relatively flat. Premiums are forecast to increase in 2022 with economic recovery and the impact of insurer rate decreases moderating. The report also notes that with declining premium rates, increasing claim frequency and an influx of COVID-19 claims, the 112% projected combined ratio for accident year 2021 is the highest in a decade.