Today’s issue of WorkCompRecap features the California WCIRB’s release of its 2023 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 increased by 14% in 2022 due to the economic recovery from the pandemic-related downturn. With continued economic expansion and flattening insurer charged rates, premiums are forecast to be above the pre-pandemic level in 2023. Claim frequency is generally returning to pre-pandemic levels, and the frequency of non-COVID-19 indemnity claims was relatively flat in 2022, following sharp changes in 2020 and 2021 related to the pandemic. With increasing premium levels and relatively stable claim frequency and severity trends, the accident year combined ratio decreased by 7 points to 105% in 2022.