Written premium for 2020 was $1.9 billion, or 12%, below that for 2019 and was the lowest since 2012, according to a new report out from the Workers’ Compensation Insurance Rating Bureau.
Written premium for the first two quarters of 2021 was 8% below that for the first two quarters of 2020, which included some pre- pandemic data, according to the WCIRB report.
However, the WCIRB is estimating modest growth in written premium for the full calendar year of 2021 compared to 2020.
The average charged rate for the first half of 2021 was 5% below that of 2020 and was the lowest in decades. Since 2015, the state’s Insurance Commissioner has approved 11 consecutive advisory pure premium rate decreases totaling over 50%.
Effective Sept. 1, the commissioner approved a 3.4% decrease in average advisory pure premium rates. The WCIRB had proposed a 2.7% increase.
The projected loss ratio for 2020, including COVID-19 claims, is 5 points above that for 2019, while the projected loss ratio for accident year 2020 excluding COVID-19 claims is roughly 1 point higher than that for 2019.
Related:
- California Workers’ Comp Written Premium Down 13%, Report Shows
- California Workers’ Comp Committee Votes for 2.7% Higher Pure Premium Filing
- California Workers’ Comp Written Premium Down 12% over 9 Months of 2020
Topics California Workers' Compensation
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