Written premium for the first quarter of 2024 was 3% lower than the first quarter of 2023, while written premium in 2023 was slightly above 2022, according to the Workers’ Compensation Insurance Rating Bureau of California.
The WCIRB released its Quarterly Experience Report, an update on California statewide insurer experience valued as of March 31, 2024.
Highlights of the report include:
- The average charged rate for the first quarter of 2024 is 1% lower than the first quarter of 2023 and the lowest in decades.
- The projected combined ratio increased by 2 points in accident year 2023, driven by increases in average claim severities offsetting premium increases.
- The average charged rate for 2023 continues to decrease. It was 5% lower than 2022 and the lowest in decades. The estimated average charged rate for the first three months of 2024 was 1% lower than 2023.
- Over the long term, declining claim frequency and increasing wage levels have offset rising medical costs and increases in indemnity benefits, resulting in decreases in average charged rates.
The WCIRB proposed a 0.9% advisory pure premium rate increase for September 1, 2024. California Insurance Commissioner Ricardo Lara issued a decreased pure premium rate, lowering the annual benchmark rate from $1.41 to $1.38 per $100 of payroll—representing a 2.1% percent decrease from last year.
Was this article valuable?
Here are more articles you may enjoy.
Florida AG Says His Office Investigating ‘Anti-Public Adjuster’ Endorsements in Policies 
Reuters: DXC in Advanced Talks to Sell Insurance Software Unit for $2.4 Billion 
KCC Says Isaias Insured Losses to Be $3 Billion; AM Best Calls Storm an Earnings Event 
How Federal Ban on Intoxicating Hemp Products Will Reshape Risk, Coverage 
