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The Workers’ Compensation Insurance Rating Bureau of California (WCIRB) has released its Quarterly Experience Report, an update on California statewide insurer experience valued as of June 30, 2021.

Highlights of the report include:

– – Written premium for 2020 is $1.9 billion or 12% below that for 2019 and is the lowest since 2012.
– – The WCIRB estimates modest growth in written premium for the full calendar year of 2021 compared to 2020
– – The average charged rate for the first half of 2021 is 5% below that of 2020 and is the lowest in decades.
– – The projected loss ratio for 2020, including COVID-19 claims, is 5 points above that for 2019.
– – The projected combined ratio for 2020, including COVID-19 claims, is 7 points higher than 2019 and 24 points higher than the low point in 2016.
– – Excluding COVID-19 claims, the projected combined ratio for 2020 is 98% which is more comparable to the 2019 ratio.
– – Early estimates for accident year 2021 claim frequency based on six months of experience show it is significantly above frequency for the first half of 2020 and approximately 5% above the first half of 2019.
– – The number of indemnity and medical-only claims continued to grow in the second quarter of 2021 as the economy reopens.
– – Pharmaceutical costs per claim increased in 2020 and the first quarter of 2021 but remain well below pre-2019 levels.

This report reflects a compilation of individual insurer submissions of accident year and calendar year premium and loss data to the WCIRB. While the individual insurer data submissions are regularly checked for consistency and comparability with other data submitted by the insurer as well as with data submitted by other insurers, the source information underlying each insurer’s data submission is not verified by the WCIRB

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