California’s written premium for the first six months of 2022 is 27% higher than it was at this point in 2021, driven by the continued economic recovery, the Workers’ Compensation Insurance Rating Bureau reported.
In its latest quarterly experience analysis, the WCIRB reported written premium of $8.9 billion in the period ended June 30.
The industry average of $1.74 charged per $100 of salary during this period was about 3% lower than the $1.80 average paid in 2021.
The WCIRB said the projected loss ratio for 2021, including the cost of covid-19 claims, is 68%, up from 62% in 2020 and 56% in 2018. The casualty year loss ratio fell from 85% in 2009 to a low of 44% in 2016 before it started to recover.
The projected total expense ratio for 2021, including COVID-19 claims, is 112%, up from 104% for 2020. The WCIRB noted that the 2021 total expense ratio is 33 percentage points higher than the 2016 low of 79%.
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