WCIRB: California Workers’ Comp Written Premium in 2023 Was up Slightly
California workers’ compensation written premium in 2023 was slightly above 2022, while written premium for the first six months of 2024 is 2% lower than the first six months of 2023, a new report shows.
The Workers’ Compensation Insurance Rating Bureau of California released its Quarterly Experience Report.
Related: Long COVID Claims Still Impact California’s Workers Comp System, Report Shows
The WCIRB report is an update on California statewide insurer experience valued as of June 30, 2024.
The report shows the average charged rate for the first six months of 2024 was 2% higher than 2023, suggesting the recent rate declines are flattening.
Following five consecutive increases, the projected combined ratio, including COVID-19 claims, changed modestly since accident year 2021, according to the report.
Related: Report: 1Q 2024 California Workers’ Comp Written Premium 3% Lower Than Year Ago
“The declining impact of COVID-19 claims and increasing severity trends result in a modest increase in accident year 2023,” the report states.
A 6-point decline from 2021 to 2022 was driven by a lower loss ratio and a lower other expense ratio. The combined ratio increased 4 points in 2023, driven by increases in average claim severities offsetting premium increases, according to the WCIRB report.
In its September 1, 2024 filing, the WCIRB proposed an average 0.9% increase in advisory pure premium rates. The California Insurance Commissioner approved an average 2.1% decrease in advisory pure premium rates.
Indemnity claims had been settling more quickly through the second quarter of 2020, primarily driven by the workers’ comp reforms. Average claim closing rates declined sharply beginning in the second quarter of 2020 due to the pandemic. Average claim closing rates are flat in 2022 to 2024 and remain below the pre-pandemic level, the report shows.