Calif. Workers’ Comp Indemnity Claim Costs Significantly Higher

December 14, 2010

California’s workers’ comp insurers wrote approximately 10 percent more premium the first nine months of 2010 compared to 2009, according to the Workers’ Compensation Insurance Rating Bureau of California. In its summary of Sept. 30, 2010 Experience. Written premium for the first nine months of 2010 was recorded at $7.4 billion.

The report states:

  • Average rate insurers charged per $100 of payroll during that period was $2.39, approximately 1 percent above the average rate charged for 2009, but still approximately 63 percent less than the average rate charged in the second six months of 2003.
  • WCIRB projects total ultimate accident year losses for 2009 of $7.6 billion, 4 percent below the 2008 level, and approximately 38 percent the pre-workers’ compensation insurance reform high in 2002.
  • The ultimate accident year 2009 combined loss and expense ratio is estimated at 127 percent. This combined ratio is 17 percentage points higher than the accident year 2008 combined ratio, and 73 points higher than the accident year 2005 ratio. The 2009 accident year combined ratio is the highest since 2001, WCIRB noted.
  • The Bureau estimated that the average cost of a 2009 indemnity claim will be approximately $62,000, an increase of 6 percent over 2008, and a 60 percent increase from 2005 figures.

To view the full report, visit

Source: WCIRB

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