California WCIRB reports written premium increase

Insurance Bureau releases metrics for second quarter of 2016

Workers Comp

By Allie Sanchez

The Workers' Compensation Insurance Rating Bureau (WCIRB) of California recently released its second quarter Insurer Experience Report for the year, citing general improvements in the overall conditions of workers’ compensation in the state.

The report found that California written premium (gross of deductible credits) reached $9.5 billion in the first half of 2016, reflecting a 7% increase for the metric in the same period last year.

Meanwhile, the projected industry average charged rate per $100 of payroll for policies derived between January 1 and June 30 this year is $2.90, posting a 5% decrease compared to the average rate charged for the first six months of 2015.

The projected combined loss and expense ratio for the ultimate accident year for 2015 is 99%, reflecting a consistency with the ratio for 2014. These ratios further peg the first projected accident year combined ratios below 100% since 2007.

Moreover, the average cost of indemnity claim is projected to be 4% higher compared with 2014, and 7% higher compared with 2013.

Medical cost savings from recently approved laws are expected to reflect on the projected average medical cost of an indemnity claim in 2015, which is seen to reflect a 9% dip compared to medical costs in 2011.
 

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