California workers’ comp premium trends are the focus of a new Quarterly Experience Report released by the Workers’ Compensation Insurance Rating Bureau of California (WCIRB). The report provides an update on the state’s insurer experience valued as of June 30, 2024.
In addition to tracking premium levels, the WCIRB uses the report to highlight shifts in charged rates, combined ratios, and the long-term effects of COVID-19 claims on the market. The findings serve as a benchmark for insurers, employers, and policymakers who rely on accurate data to understand how the state’s workers’ compensation system is evolving.
Highlights of the report include:
- The written premium in 2023 is slightly above 2022, while the written premium for the first six months of 2024 is 2 percent lower than the first six months of 2023.
- The average charged rate for the first six months of 2024 is 2 percent higher than 2023, suggesting the recent rate declines are flattening.
- Following five consecutive increases, the projected combined ratio, including COVID-19 claims, has changed modestly since the accident year 2021.
The full report is in the Research Studies and Reports section of the WCIRB website and at the following link:
Conclusion
The WCIRB’s Quarterly Experience Report provides valuable insights into California’s workers’ compensation landscape as of June 30, 2024. While written premiums have shown slight fluctuations, the increase in average charged rates indicates a stabilizing market. As the industry adapts to ongoing challenges, including the effects of COVID-19 claims, this report serves as a critical resource for insurers and stakeholders seeking to navigate the evolving dynamics of workers’ compensation in California.
Looking ahead, analysts note that close monitoring of workers’ comp premium levels will be essential for employers and insurers alike. Premium shifts often reflect broader economic pressures, claim activity, and legislative adjustments, meaning even modest changes can have lasting effects on coverage affordability. For businesses, understanding where the workers’ comp premium market is headed can provide a competitive advantage when budgeting for labor costs and managing risk.
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FAQs: California Workers’ Comp Premium Trends
What are California workers’ comp premium trends in 2024?
California workers’ comp premium trends show a slight decline in written premiums and modestly higher rates, according to WCIRB’s 2024 report.
How do California workers’ comp premium trends affect employers?
Employers may see more stable premium costs as rate declines flatten, making long-term planning easier for businesses managing coverage expenses.
Why are California workers’ comp premium trends important to insurers?
Insurers track premium trends to evaluate market health, predict claim costs, and adjust underwriting strategies in response to statewide shifts.
Where can I find the official California workers’ comp premium trends report?
The Workers’ Compensation Insurance Rating Bureau of California publishes quarterly updates on premium and rate changes that insurers and employers can access online.
How do workers’ comp premium changes impact small businesses in California?
Shifts in the workers’ comp premium can significantly affect small businesses, as even modest increases may influence hiring decisions, payroll management, and overall operating costs.
What factors drive workers’ comp premium adjustments in California?
Workers’ comp premium adjustments are typically influenced by claim frequency, medical cost trends, industry risk levels, and broader economic conditions across the state.
Are workers’ comp premium trends likely to stabilize in 2025?
Industry experts suggest that California’s workers’ comp premium rates may stabilize in 2025 as insurers adjust to post-pandemic claim patterns and ongoing regulatory oversight.