Skip to Content


Print page

Report on Year-End 2016 Insurer Experience Released

The WCIRB has completed its report on statewide workers’ compensation insurer loss and premium experience through December 31, 2016. The major findings of the report include:

  • California written premium for 2016 is approximately $18.1 billion, which is 3% above the written premium reported for 2015.
  • The projected industry average charged rate per $100 of payroll for policies incepting between July 1, 2016 and December 31, 2016 is $2.67, which is 6% below the average rate charged for the first six months of 2016 and 12% below the average rate charged for the first six months of 2015.
  • The WCIRB projects a preliminary ultimate accident year combined loss and expense ratio of 94% for 2016. This projection is consistent with the ratios for the prior two accident years, which represent the lowest combined ratios since the 2004 through 2006 period.  
  • The WCIRB projects indemnity claim frequency for accident year 2016 to be 1.3% below the frequency for 2015 but 9% above the frequency for 2009. 2015 and 2016 represent the first consecutive years of projected indemnity claim frequency decline since before the Great Recession.
  • The WCIRB projects the average cost (or “severity”) of a 2016 indemnity claim to be approximately $82,000, which is 4% higher than the projected severity for 2015 and 10% higher than that for 2013. 
  • The WCIRB projects that the average ALAE cost of a 2016 indemnity claim, excluding MCCP costs, is 3% above that of 2015. Projected ALAE severities by accident year as of December 31, 2016 experience are significantly lower than prior projections (as of March 31, 2016). This recent favorable ALAE development is likely in part attributable to recent increases in the rate at which indemnity claims are settling.

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

WCIRB Research Forum

The WCIRB will hold a WCIRB Research Forum webinar to discuss the Report findings as well the WCIRB’s recent July 1, 2017 Pure Premium Rate Filing. To register for the webinar, please click the registration link below.

Date: Thursday, April 27, 2017
Time: 11:00 AM – 12:00 PM PT
Register Now>

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

April 14, 2017