The Workers’ Compensation Insurance Rating Bureau of California (WCIRB) has published its latest Quarterly Experience Report, offering an updated view of statewide insurer experience valued as of December 31, 2025. The report reflects recent trends in premium, rates and system costs based on insurer-reported data.

Key findings from the report include:

– – Written premiums in calendar years 2022 through 2025 are relatively stable compared to large swings during the pandemic.
– – Average charged rates have declined steadily since 2014, reaching a historical low in 2025. The smaller decreases in the past two years suggest this trend may be leveling off.
– – The projected loss and allocated loss adjustment expense (ALAE) ratio for accident year 2025 (95%) is generally consistent with 2024 (94%).
– – The combined ratio rose 3 points in 2025 to 129%, its highest level in over 20 years. Recent increases are driven by higher claim frequency and higher loss and loss adjustment expense (LAE) costs, with relatively stable earned premium.
– – Combined ratios have exceeded 110% for the past five years. The last sustained period above 100% was prior to the Senate Bill No. 863 (SB 863) reforms.
– – Closing rates declined beginning in the second quarter of 2020 due to the pandemic and have trended lower since 2023, likely reflecting higher volumes of CT claims and increased litigation, which prolongs the claims process. The closing rate is 32.8% in 2025.
– – Since 2022, increases in indemnity claim frequency have been driven by growth in the frequency of CT claims. Excluding CT claims, recent changes have been more modest.
– – In 2025, overall frequency remains above the long- term trend due to continued elevated reporting of CT claims.
– – After increasing for eight consecutive years, projected total loss and ALAE severity is generally flat in 2025, but remains 29% above 2016.
– – ALAE severities have seen significant increases each year since 2021, with an 11% increase in 2025.
– – Following a modest increase in accident year 2024, projected indemnity severity declined slightly by 1% in accident year 2025. Indemnity severity in 2025 is 27% higher than 2016.
– – Average medical-legal costs per claim have increased sharply since 2022. This reflects both higher utilization and a continued increase in average payment per service, particularly for medical record review.
– – Recent increases are also associated with growth in CT claims, which have higher utilization of medical-legal services, as well as increased use of services involving psychological or psychiatric evaluations. Medical-legal cost increases are also more pronounced in Southern California.

The information presented reflects a compilation of individual insurer submissions of information 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 WCIRB wrote it can make no warranty with respect to the information provided by third parties.