California’s Comp Insurers Had 5.1% More in Direct Written Premium in 2016

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California workers’ compensation insurers wrote $12.96 billion in direct written premium last year, an increase of $628 million, or 5.1 percent, from the prior year, according to new data from the National Association of Insurance Commissioners released by the California Department of Insurance.

The CWCI complied figures from the reports and issued its own report on Monday.

The increase noted in the CDI’s 2016 California Property and Casualty Market Share Report means California’s total DWP has now risen for seven consecutive years as the state’s economy has continued its post-recession rebound, according to the CWCI.

Employment and covered payroll fell sharply during the economic downturn that hit the state a decade ago, which helped spur the decline in DWP from a record $16 1 billion in 2004 to $6 9 billion in 2009 — a move that also coincided with the enactment of California’s workers’ comp reform law, Senate Bill 899.

But steady improvement in the job market since then has driven covered payroll back up, and the latest increase in DWP means total premium has now risen 88 percent since bottoming out, hitting a 10-year high in 2016, according to the CWCI.

This chart compiled by the California Workers’ Compensation Institute shows top insurers in terms of direct written premium for 2016.

While last year’s 5 1 percent increase in aggregate premium was less than the 8.0 percent jump in 2015, there were some significant changes in premium volume among the largest workers’ comp writers that led to some shifts in the rankings of the 10 largest insurer groups, CWCI stated.

State Compensation Insurance Fund remained the largest insurer m the state, with $1.61 billion in DWP, though that was 1.6 percent less than in 2015, so its market share fell to 124 percent last year. Berkshire Hathaway followed, increasing its premium volume by $77 million and pushing its market share up to 10.9 percent, while AmTmst NGH Group was third, adding $276 million in DWP.