California premium up 27% in first half of year
California’s written premium for the first six months of 2022 is 27% higher than it was at this point in 2021, driven by the continued economic recovery, the Workers’ Compensation Insurance Rating Bureau reported.
The WCIRB, in its latest quarterly experience analysis, reported written premium of $8.9 billion through the period ending June 30.
The industry average charged rate of $1.74 per $100 of payroll during this period was about 3% lower than the average $1.80 paid in 2021.
The WCIRB said the projected loss ratio for 2021, including the cost of COVID-19 claims, is 68%, up from 62% in 2020 and 56% in 2018. Accident year loss ratios fell from 85% in 2009 to a low of 44% in 2016 before starting to rebound.
The projected combined ratio for 2021, including COVID-19 claims, is 112%, up from 104% for 2020. The WCIRB noted that the 2021 combined ratio is 33 percentage points higher than the low of 79% in 2016.
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