Menu Close

The Workers’ Compensation Insurance Rating Bureau of California (WCIRB) has released its Quarterly Experience Report. This report is an update on California statewide insurer experience valued as of September 30, 2023.
Highlights of the report include:

– – Written premium through the third quarter of 2023 of $12.1 billion is 2% higher than the same period in 2022.
– – The average charged rate for the first nine months of 2023 continues to decrease; it is 5% lower than 2022 and the lowest in decades.
– – After five consecutive increases, the projected loss ratio, including the cost of COVID-19 claims, dropped 2 points in accident year 2022.
– – After increasing over the prior five years, the projected combined ratio for accident year 2022, including COVID-19 claims, is 6 points lower than in 2021.
– – Average claim closing rates have steadily increased in 2022 and 2023 but remain below the pre-pandemic level.
– – Projected severity on indemnity claims for 2022 is 4% higher than 2021 and 16% above 2017.
– – The average severity in 2022 is the highest it has been in more than a decade, since before the SB 863 reforms.
– – Following several years of modest changes, indemnity severity has increased steadily since 2017. Accident year 2022 indemnity severity is 6% higher than 2021 and 23% higher than 2017. Recent growth in indemnity claim severities has been in part driven by above average wage inflation during the pandemic.
– – The projected medical severity for 2022 is 2% higher than 2021 and 14% higher than 2017. Some of the recent growth in medical severities may be attributable to claims staying open longer since the start of the pandemic and increasesto medical fee schedule reimbursements effective in early 2021.
– – The average paid medical service cost per claim in 2022 is higher than 2021, driven by higher payments per transaction. Some of the paidperclaim growth in 2021 and 2022 is attributable to higher fee schedule reimbursement levels for evaluation and management and medical-legal services effective in early 2021.

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