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Report on the State of the Workers' Compensation Insurance System

2022 State of the SystemThe State of the Workers’ Compensation Insurance System report is developed to enable you with the latest information on California’s key workers’ compensation cost drivers to facilitate decision making. This annual report summarizes the cost of workers’ compensation insurance based on premiums paid by insured employers, shows how premium dollars are distributed among various system components and identifies key cost drivers such as frequency and the average cost of claims. ​ 


State of the System by Topic

Frequency Characteristics – Run Time: 5:06

Tony Milano, WCIRB Vice President, Actuary, explores the characteristics of indemnity claims across California, why they're higher in Southern California and how the Bay Area and the rest of the state compare.

Medical Claim Severity Characteristics – Run Time: 4:43

Julia Zhang, PhD, WCIRB Vice President, Data Analytics, walks us through the characteristics of medical claims and the drivers raising and lowering their costs state-wide, including both pharmaceutical and legal costs.

Industry Results – Run Time: 6:05

Dave Bellusci, WCIRB Executive Vice President and Chief Actuary, sums up the impact of COVID-19 on the California workers' compensation system and declining premiums on profitability.

COVID-19 Claim Severity – Run Time: 3:27

Dilan Sahin, WCIRB Senior Indemnity Research Analyst, examines the effects of COVID-19 on the severity of California workers' compensation claims.

Medical Claim Severity – Run Time: 2:49

Rising medical costs and salaries are having an effect on medical indemnity claims in California. Katrina Sonka, WCIRB Senior Actuarial Services Analyst, goes over the effects of legislation on costs and compares California to the rest of the country

Indemnity Claim Severity – Run Time: 2:55

The WCIRB's Katrina Sonka goes over the causes of rising indemnity claims severity in California and why it is higher than other states.

Claims Duration – Run Time: 4:48

The WCIRB's Tony Milano discusses workers' compensation claims duration in California.

COVID-19 Claim Frequency – Run Time: 2:39

Laura Carstensen, WCIRB Vice President, Actuarial Research, reviews workers' comp claim frequency during the COVID-19 pandemic.

Overall Claims Frequency – Run Time: 5:21

The WCIRB's Tony Milano discusses overall workers' compensation claim frequency trends in California over the past 18 years.

Rates – Run Time: 4:21

The WCIRB's Dave Bellusci goes over how and why rates are continuing their downward trend.

Economic Impact on Wages – Run Time: 2:24

Shane Steele, WCIRB Research Actuary, covers the impact of the COVID-19 pandemic on the average wage in California.

Premiums – Run Time: 6:33

The WCIRB's Dave Bellusci reviews the data and factors that the WCIRB uses to calculate the recommended pure premium rate for workers' compensation insurance premiums.

Economic Impact on Pandemic – Run Time: 2:38

The WCIRB's Shane Steele highlights key data points on the economic effect of the COVID-19 pandemic on the California workers' compensation system.

Frictional Costs – Run Time: 4:53

The WCIRB's Tony Milano continues the WCIRB's review of the frictional costs affecting workers' compensation in California and how much lawyer fees and litigation affect rates.

View previous State of the System reports.