WCIRB First Quarter 2018 Experience Report Released
The WCIRB has released its quarterly update on California statewide insurer experience valued as of March 31, 2018.
Highlights of the report include:
California written premium for the first calendar quarter of 2018 is $5.0 billion, which is consistent with the written premium reported for the first calendar quarter of 2017.
The projected industry average charged rate per $100 of payroll for policies incepting between January 1, 2018 and March 31, 2018 is $2.38, which is 6% below the average rate charged for policies incepting in 2017.
The WCIRB projects the ultimate accident year combined loss and expense ratio for 2017 to be four points above that for accident year 2016, driven by higher medical severities for 2017 and lower premium rates.
Indemnity claim frequency increased by 11% from accident year 2009 to accident year 2014, but has decreased by 5% from accident year 2014 through the first three months of accident year 2018.
Cumulative trauma (CT) claim rates continue to be at high levels for accident year 2016 and the ratio of CT claims to all indemnity claims has increased by over 65% since accident year 2005.
Projected claim severity for accident year 2017 is 2.5% higher than that for accident year 2016, following several years of relatively flat severities.
The full report is available in the Research section of the WCIRB website (wcirb.com) and linked below: