From our friends at Business Insurance
9/16/2015 11:04 am
California workers comp premiums up 9%
By Sheena Harrison
California workers compensation written premiums increased 9% year-over-year to $8.9 billion in the first half of 2015, according the California Workers’ Compensation Insurance Rating Bureau.
Meanwhile, workers comp combined ratios have continued to fall in California over the past few years, according to a report Monday from Oakland, California-based WCIRB. The bureau has projected a combined ratio of 104% for 2014, down from 108% in 2013 and 121% in 2012.
California indemnity claim frequency fell 1.3% in the first six months of the 2014-15 accident year compared with no change in frequency a year ago and a 0.5% increase in claim frequency in the 2012-13 accident year, WCIRB said.
However, comp claim indemnity severity has increased in recent years, according to the rating bureau. California insurers were projected to pay up to an average of $27,766 per indemnity claim in 2014, up 7.7% from 2013.
WCIRB found that medical severity has improved in California workers comp claims. Insurers were projected to pay up to an average of $44,308 per claimant in medical benefits for 2014, down nearly 1% from 2013, according to the bureau’s report.