The WCIRB has completed its report on workers’ compensation insurer loss and premium experience through December 31, 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 for calendar year 2014 is approximately $16.5 billion – approximately 11% above the written premium reported for 2013 and 88% above the written premium reported for 2009.
2) The projected industry average charged rate per $100 of payroll for 2014 is $2.93. This is approximately 2% above the average rate charged for 2013 and 40% above the average rate charged for 2009. However, the average rate charged for 2014 remains approximately 53% less than the average rate charged for the second six months of 2003.
3) The WCIRB projects total ultimate losses and allocated loss adjustment expense (ALAE) for accident year 2014 to be $12.6 billion. While approximately 4% above the projection for accident year 2013 and 27% above the projection for accident year 2009, it remains below the highs experienced prior to the 2002 through 2004 reforms.
4) The WCIRB projects a preliminary ultimate accident year combined loss and expense ratio of 103% for 2014. Of this, 61% is attributable to the indemnity and medical loss ratio and 42% is attributable to the loss adjustment and other expense ratio. Like the projected 2014 loss and ALAE ratios, this projection is primarily a result of increased premium levels and relatively low claim severity growth in 2014.
5) The preliminary calendar year combined loss and expense ratio for 2014 reported by insurers is 105%, which is somewhat below the combined ratios for the last several years, but 2014 is the seventh consecutive year with a combined ratio over 100%.
6) The WCIRB projects indemnity claim frequency for accident year 2014 to be 1.2% above the frequency for 2013 and approximately 12% above the frequency for 2009. The frequency increases experienced over the last few years are largely attributed to increases in cumulative injury claims, late reported indemnity claims, claims involving injuries to multiple body parts, and claims originating in the Los Angeles area. See related report, Analysis of Changes in Indemnity Claim Frequency – January 2015 Update Report in the Research and Analysis section of the WCIRB website (www.wcirb.com).
7) The WCIRB projects the average severity of a 2014 indemnity claim to be approximately $84,000, which is generally consistent with the projected severities for the last several accident years.
8)The WCIRB currently projects the total statewide ultimate losses on all injuries that occurred on or before December 31, 2014 to be approximately $6.8 billion more than the amounts reported by insurers. These estimates are somewhat below those presented in recent prior summaries as a result of favorable loss development experienced in recent quarters.

The full report is available in the Research and Analysis section of the WCIRB website (www.wcirb.com).