California Workers’ Comp Written Premium Down 12% over 9 Months of 2020
Workers’ compensation written premium in California for the first nine months of 2020 was 12% below that for the first nine months of 2019, according to a quarterly experience report released on Friday by the Workers’ Compensation Insurance Rating Bureau of California.
The report also shows written premium for the full calendar year of 2020 is expected to be the lowest since 2012.
Highlights of the report include:
- California written premium for the first nine months of 2020 is 12% below that for the first nine months of 2019.
- The average charged rate for the first nine months of 2020 is 9% below that for 2019 and 40% below the peak in 2014.
- While premium decreases through the first quarter of 2020 were driven by decreases in insurer charged rates, the large decrease in premium for the second and third quarters of 2020 was driven by the sudden and sharp slowdown in the economy.
- The January 1, 2021 approved advisory pure premium rates, which do not include the cost of COVID-19 claims, are on average 50% below those for Jan. 1, 2015 and 4.6% below those for Jan. 1, 2020.
The full report is available in the Research section of the WCIRB website.