The WCIRB has completed its report on workers’ compensation insurer loss and premium experience through September 30, 2014. This report is based on data reported to the WCIRB by insurers who wrote almost 100% of the statewide market. The major findings of the report include:

1) California written premium (gross of deductible credits) for calendar year 2013 is approximately $14.8 billion. This is approximately 18% above the written premium reported for 2012 and 68% above the written premium reported for 2009. Written premium for the first nine months of 2014 is approximately $12.5 billion, which is approximately 12% above the written premium reported for the first nine months of 2013.
2) The projected industry average charged rate for policies written in the first nine months of 2014 is $2.93 per $100 of payroll, which is up approximately 2% since 2013 and up approximately 40% since 2009. Even so, the industry average charged rate remains approximately 53% less than it was for the second six months of 2003.
3) The WCIRB projects total ultimate losses and allocated loss adjustment expense (ALAE) for accident year 2013 to be $12.5 billion. While approximately 6% above the projection for accident year 2012 and 25% above the projection for accident year 2009, it remains below the highs experienced prior to the 2002 through 2004 reforms.
4) The WCIRB projects an ultimate accident year combined loss and expense ratio of 111% for 2013. This projection is below that of the last several accident years primarily as a result of increased premium levels and relatively low claim severity growth in 2013.
5) The calendar year combined loss and expense ratio for 2013 reported by insurers is 109%, which is somewhat below the combined ratios for the last few years but represents the sixth straight calendar year with a combined ratio of over 100%.
6) The WCIRB projects indemnity claim frequency for accident year 2013 to be 3.9% above the frequency for 2012 and approximately 14% above the frequency for 2009. The projected indemnity claim frequency for the first nine months of 2014 is 0.9% higher than that for the first nine months of 2013.
7) The WCIRB projects the average cost (or “severity”) of a 2013 indemnity claim to be approximately $85,000, which is generally consistent with the projected severities for the last several accident years. The projected 2013 average loss and ALAE severity reflects an increase of almost $30,000 (or more than 50%) since the full implementation in 2005 of the 2002 through 2004 reforms.
8) The WCIRB currently projects the total statewide ultimate losses on all injuries that occurred on or before December 31, 2013 to be approximately $9.6 billion more than the amounts reported by insurers.

The full report is available in the Research and Analysis section of the WCIRB website.