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Quarterly Experience Report for Year-End 2017 Released

The WCIRB has released its Quarterly Experience Report based on statewide workers’ compensation insurer loss and premium experience through December 31, 2017. The report contains several enhancements including an updated interactive design with new insights and several new charts tracking current cost drivers in the system. The major findings of the report include:

  • California written premium for 2017 is 2% below that for 2016; the first decrease in seven years.
  • The projected industry average charged rate per $100 of payroll for policies incepting in 2017 is $2.46, which is 10% below that for 2016 and 17% below the peak in 2015.
  • The WCIRB projects an ultimate accident year combined loss and expense ratio of 92% for 2017. This projection is 5 points higher than that for 2016 as premium levels have lowered while average claim severities increased moderately.
  • Indemnity claims continue to settle quicker, and the ratio of claim closure for 2017 represents a 17-year high.
  • The WCIRB projects indemnity claim frequency for accident year 2016 to be 3% below the frequency for 2015. However, claim frequency for 2017 shows a modest increase (1%) similar to other recent years.
  • The WCIRB projects the average cost (or “severity”) of a 2016 indemnity claim to be approximately $77,000, which is 4% higher than the projected severity for 2016 following several years of relatively flat severities.
  • Average pharmaceutical costs per claim for the first three quarters of 2017 are 70% below the levels from 2012. This is prior to the impact of the new drug formulary effective in 2018, which is expected to further reduce pharmaceutical costs.
  • The average number of liens filed in 2017 is 40% below the averages experienced shortly prior to the implementation of the SB 1160 and AB 1244 reforms impacting lien filings.

The full report is available in the Research section of the WCIRB website ( or by clicking the link below.

WCIRB Research Forum

The WCIRB's Dave Bellusci, EVP and Chief Actuary, and Tony Milano, VP and Actuary, will host a webinar to review the December 31, 2017 Quarterly Experience Report and the WCIRB's July 1, 2018 Pure Premium Rate Filing. Register for this free webinar at the link below.

Tuesday, April 17, 2018, 10:00 - 11:00 AM PT
Register Now>

For those unable to attend the live webinar, a recording will be posted in the Research section of the WCIRB website following the event.

April 13, 2018