The California Workers’ Compensation Insurance Rating Bureau (WCIRB) released their quarterly experience report and it suggests that decreases in written premium may have escalated in 2019.

Written premium for 2018 is 4 percent below the premium for 2017, and 6 percent below the premium for 2016. The decreases since 2016 have been driven by decreases in insurer charged rates more than offsetting increases in employer payroll.

https://www.wcirb.com/sites/default/files/documents/quarterly_experience_report_2019_3q.pdf

The average charged rate for the first nine months of 2019 is 11 percent below the rate for 2018 and 32 percent below the peak in 2014. The January 1, 2020 approved advisory pure premium rates are, on average, 47 percent below those for January 1, 2015.

The WCIRB projects the ultimate accident year loss ratio for 2018 to be three points above that for accident year 2017, driven by higher claim severities for 2018 and lower premium rates.

The projected combined ratio for 2018 is 5 points higher than 2017 as premium levels have lowered and average claim severities increased. Still, combined ratios for the last six years remain below 100% and are the lowest since the period between 2003 and 2007.

Read the full report from WCIRB here.