The written premium for insurance companies for work injury compensation in California decreased by 2% last year, the Workers’ Compensation Insurance Rating Bureau of California said in an experience report released on Wednesday.
WCIRB also reported that the frequency of claims increased during the year.
The written premium for 2021 amounted to $ 13.7 billion, compared to $ 14 billion the previous year. The written premium has decreased since it reached a peak of $ 18.1 billion in 2016.
Industry average charged prices have also consistently fallen since the highest of $ 3.24 per $ 100 in salary in 2014. The average charged interest rate of $ 1.81 for 2021 was 7% lower than the average of $ 1
.94 in 2020.The forecast total cost ratio for 2021, including claims for covid-19, is 112%, compared to 105% for 2020. WCIRB noted that last year’s estimated total cost percentage is 33 percentage points higher than the lowest of 79% set in 2016.
Excluding claims for covid-19, the estimated total cost percentage for 2021 is 111%, compared with 100% for 2020.
The claim rate for non-COVID-19 increased by 8.2% in 2021 when the economy recovered from the pandemic peak which contributed to a decrease of 11.9% in the 2020 rate.
WCIRB reports that the final claim, excluding COVID-19 claims, increased to $ 29,445 per claim in 2021 from $ 28,646 in 2020.
WorkCompCentral is a sister magazine to Business Insurance. More stories here.
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