Geo Study Highlights Regional Cost Differences in California Workers’ Comp

Where an injured worker lives in California and receives care can significantly affect claim frequency, complexity and overall costs, a new study shows.

The newly released Workers’ Compensation Insurance Rating Bureau of California’s 2025 Geo Study shows clear regional differences in workers’ comp claim trends.

Indemnity claim frequency remains much higher in Southern California, with the Los Angeles/Long Beach region recording rates more than 50% above the statewide average. On the other hand, Northern California regions, including Yuba City/Redding/Far North, reported frequencies more than 30% below the statewide level.

These patterns have remained consistent for several years, but the gap between regions widened in the most recent policy year, according to the WCIRB.

The study also highlights continued increases in more complex claims. Cumulative trauma and occupational disease claims reached their highest share in the 11 years the report has been compiled, with Southern California regions reporting nearly double the share seen in Northern California. Some of the largest year-over-year increases occurred in the L.A. Basin, including L.A./Long Beach and San Gabriel Valley/Pasadena (p.18).

Medical-legal activity continued to increase as well. Medical-legal expenses made up nearly 11% of total paid medical statewide, with L.A. Basin regions reporting shares around 14%. The share of indemnity claims involving a medical-legal report also increased, surpassing 32% in several Southern California regions.

Allocated loss adjustment expense showed similar patterns. Median paid ALAE on permanent disability claims remained much higher in Southern California, where levels were more than twice those reported in some Northern California regions.

An overall decrease in the share of reported injured workers with less than one year of tenure suggests a slowdown in hiring, according to the study. Previous research has shown that newly hired workers are more likely to be injured on the job and they are less likely to file cumulative trauma claims.

The share of injured workers with less than one year of tenure fell in 18 of the 19 regions in the 2024 accident year. San Diego (19) had the largest decrease of around five percentage points, and Orange County (17) was the only region with a slight increase of half of a point, the WCIRB study states.

Topics California Workers' Compensation