WCIRB releases 2022 State of the System report
Workers compensation premiums are forecast to increase in 2022, with economic recovery and the impact of insurer rate decreases moderating, according to a report released Thursday by the Workers’ Compensation Insurance Rating Bureau of California.
The ratings agency’s 2022 State of the System report also stated that with declining premium rates, increasing claim frequency and an influx of COVID-19 claims, the 112% projected combined ratio for accident year 2021 is the highest in a decade.
Premium levels dropped sharply in 2020 due to continued insurer rate decreases and the pandemic-related economic slowdown, while in 2021 the premium level was relatively flat, according to WCIRB.
The frequency of non-COVID-19 indemnity claims rose sharply in 2021 and the share of indemnity claims involving cumulative trauma is also rising.
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