Written premiums in California fell 13 percent in 2020 to $ 2 billion – the lowest in the state since 2012 – driven by continued reductions in average insurer fees, the Workers Compensation Insurance Rating Bureau of California reported Thursday.
In its quarterly experience report, which ended December 31, 2020, the Oakland, California-based WCIRB reported that the average billed rate for 2020 was 9% in 2019 and 40% in the peak of 2014, when the rate was $ 2.97 per $ 100 of wages.
The State's preliminary forecast accident ratio for 2020, including COVID-19 claims, is 102%, seven points higher than 2019 and 23 points higher than the lowest of 79% in 2016. But excluding COVID-1
The claim rate for 2020, excluding coronavirus claims, is almost 6% lower than last year, probably driven by the downturn in the economy caused by t he pandemic, WCIRB reported. The proportion of open claims that were closed in 2020 was 34%, a decrease of 4% from 2019, probably due to the economic downturn.
Claims and medical claims only decreased by 13% and 31% respectively in the second quarter due to lower exposure levels during home orders, and although damages remained lower than average, but climbed higher than 2019 in the second half of 2020 due to filing more than 16,000 claims under COVID-19 during that period. for the year is 3% lower than 2019.
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