Source: Insurance Journal
Premium decreases in California workers’ compensation may have escalated in 2019, a new report shows.
The Workers’ Compensation Insurance Rating Bureau of California on Wednesday released its quarterly experience report, an update on California statewide insurer experience valued as of Sept. 30.
The report shows decreases in written premium since 2016 are primarily driven by decreases in insurer charged rates more than offsetting increases in employer payroll.
Written premium for 2018 was 4% below that for 2017 and 6% below that for 2016, according to the WCIRB report.
Highlights of the WCIRB report include:
- California written premium through the third calendar quarter of 2019 is 7 percent below the same period for 2018, suggesting that premium decreases are escalating in 2019.
- The average charged rate for the first nine months of 2019 is 11 percent below that for 2018 and 32 percent below the peak in 2014.
- The WCIRB projects the ultimate accident year loss ratio for 2018 to be three points above that for accident year 2017, driven by higher claim severities for 2018 and lower premium rates.
The full report is available in the research section of the WCIRB website.