Report on 2nd Quarter 2018 Insurer Experience Released
The WCIRB has completed its report on statewide workers’ compensation insurer loss and premium experience through June 30, 2018. The major findings of the report include:
California written premium for the first six months of 2018 is $9.1 billion, which is consistent with the written premium reported for the same period in 2017.
The projected industry average charged rate per $100 of payroll for policies incepting in the first six months of 2018 is $2.35, which is 7% below the average rate charged in 2017 and 21% below the peak level in 2014.
The WCIRB projects an ultimate accident year combined loss and expense ratio of 88% for 2017.
After increasing by 11% from 2009 to 2014, indemnity claim frequency has decreased by 6% from 2014 through the first 6 months of 2018.
The WCIRB projects the average cost (or “severity”) of a 2017 indemnity claim to be approximately $71,000, which is 2% higher than the projected severity for 2016 following several years of relatively flat severities.
The full report is available in the Research section of the WCIRB website (wcirb.com) or by clicking the link below.