Workers’ Compensation Premiums Are Falling In California, According To WCIRB Report By Lonce Lamonte - December 13, 2018
Business Insurance Magazine reported today that workers’ compensation premiums in California are continuing to fall on the whole. The publication based their reporting according to a Quarterly Experience Report released yesterday by California’s Workers’ Compensation Rating Bureau.
The first nine months of 2018 recorded 3% in total workers’ compensation premiums less than for the first nine months of 2017. The premium for 2017 was less than 2016 figures by 2%. But it also revealed that the average charged rates in the first nine months of 2018 were 10% below those for 2017 and 23% below the peak in 2014.
The January 1, 2019 approved advisory pure premium rates are 42% on the average below those for four years ago of January 1, 2015.
The Report set the projected loss ratio for 2017 at 2 points above 2016, citing higher medical severities in 2017 with lower premium rates. Despite the 2017 increase, the projections for other years are below those projected in prior quarters as a result of favorable loss development emerging.
2014 to 2017 remain the lowest in combined ratios since the 2004 to 2006 time period, according to the Report. Indemnity claims continue to settle more quickly and have improved significantly over the past six years. Claim frequency increased by 11 per cent from 2009 to 2014, but decreased by 4% from 2014 through September of 2018.
Frequency increased since 2011 have been attributed to cumulative trauma claims and claims from the Los Angeles area.
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Comp Premiums Continue To Fall In California, Business Insurance, December 13th 2018. https://www.businessinsurance.com/article/20181213/NEWS08/912325653/Report-shows-dip-in-California-workers-compensation-premium-rating-bureau
WCIRB Quarterly Experience Report, as of September 30, 2018 - https://www.wcirb.com/sites/default/files/documents/wcirb_quarterly_experience_report_20183q.pdf
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Lonce Lamonte, journalist; lonce@adjustercom.com
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