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The Workers’ Compensation Insurance Rating Bureau of California has released its Quarterly Experience Report. This report is an update on California statewide insurer experience valued as of December 31, 2022.

The WCIRB proposed a modest overall increase of 0.3% in advisory pure premium rates in its September 1, 2023 Pure Premium Rate Filing.

Highlights of the report include:

– – California written premium in 2022 is 14 percent above that for 2021, driven by higher employee wage levels and the economic recovery.
– – The average charged rate for 2022 is 7 percent below that for 2021 and the lowest in decades.
– – After four consecutive increases,the projected loss ratio, including the cost of COVID-19 claims, dropped 4 points in accident year 2022.
– – The projected combined ratio for 2022, including COVID-19 claims, is 5 points lower than in 2021.
– – The lower combined ratio in 2022 is driven by a significant increase in premium due to higher payrolls and very modest changes in claim frequency and severity.
– – Average claim closing rates are beginning to increase in 2022 but remain below the pre-pandemic high.
– – Claim frequency for 2022 is comparable to 2021 and consistent with the pre-pandemic trend.
– – The 2022 average severity is the highest in more than a decade since prior to the SB 863 reforms.
– – The projected medical severity for 2022 is 1% lower than 2021 and 9% higher than 2017.
– – Average medical service costs paid per claim in 2022 is consistent with 2021, as higher payments per transaction were offset by fewer transactions per claim.

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