Direct written comp premium in California hits 5-year low
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Workers compensation direct written premium in the state of California declined to a five-year low in 2019, according to a bulletin released Monday by the California Workers Compensation Institute.
Direct written premium in the state declined 7% to $11.42 billion, with all but one of the state’s 10 largest insurers writing less premium in 2019 than in 2018, the bulletin said.
The market-share data, released by the National Association of Insurance Commissioners, showed that the state’s premium dropped by nearly $863 million between 2018 and 2019, with the average charge per $100 of covered payroll at $2 in the state — far below the $2.97 average charge in 2014, the Oakland, California-based CWCI said.
The bulletin stated that rates have declined since the passage of S.B. 863, which was signed into law in 2012 and enacted reforms to reduce comp administrative costs and improve care for injured workers.
According to the CWCI, San Diego-based ICW Insurance Group Co. was the only comp insurer in the top 10 that increased its direct written premium volume in 2019, making it the third-largest comp insurer by premium volume in the state.
Berkshire Hathaway Inc., which had held the top spot the past two years, saw a $272 million decline in total premium volume from 2018 to 2019, dropping it to No. 2 in the state. The State Compensation Insurance Fund saw a premium drop of $133 million, but the insurer regained its place as the largest comp writer by premium in California.
