California reports 5% written comp premium drop in Q1
- March 21, 2024
- Posted by: Web workers
- Category: Workers Comp
Workers compensation written premium in California dropped 5% in the first quarter, compared with the year-earlier period, California’s Workers Compensation Insurance Rating Bureau said Monday in its quarterly experience report.
The average charged rate was 7% below last year’s first quarter and 39% below the peak in 2014.
Although COVID-19 figures are not reflected, the report noted that the WCIRB expects employer payroll and insurer premium to continue to decline sharply for the remainder of this year.
The WCIRB also found that the projected accident year combined ratio for 2019 was eight points higher than 2018 at 95% due to declines in premium levels combined with moderate upticks in claim frequency and severity. The ratings bureau said it may see further increases in its combined ratio due to the potential impact of COVID-19 on premium levels and overall comp costs.
Indemnity claim frequency increased in 2019, and the WCIRB noted that the impact of COVID-19 on claim frequency “is not yet clear,” though “the slowdown in economic activity is expected to reduce claim filings.”
More insurance and workers compensation news on the coronavirus crisis here.
