California WCIRB Releases Report On Q4 2011 Insurer Experience


San Francisco, CA ( - The WCIRB recently completed and has released its report on insurer loss and premium experience through December 31, 2011.

Among the WCIRB's findings:

  • Statewide written premium (gross of deductible credits) reported by insurers has risen by $1 billion for the second consecutive year. The $10.8 billion in written premium reported for 2011 is the highest premium since 2007.
  • The WCIRB projects an industry average charged rate for 2011 of $2.39 per $100 of payroll, which is 3% above 2010 and 11% above 2008. However, the 2011 industry average charged rate remains 62% less than the pre-reform high in the second six months of 2003.
  • The WCIRB projects the 2011 accident year combined loss and expense ratio to be 126%. While below the WCIRB's projected combined ratios of 132% for 2009 and 133% for 2010 due to increased premium in 2011, the accident year 2011 combined ratio represents the fourth consecutive year with a combined ratio well above 100%.
  • The WCIRB projects that the 2011 accident year indemnity claim frequency is at approximately the same level as 2010, but is almost 9% higher than the frequency for 2009.
  • The WCIRB projects that the average severity of an accident year 2011 claim is approximately $67,000. While only slightly above the severities for accident years 2009 and 2010, it is $20,000, or 43%, higher than the projected average severity for accident year 2005, which reflected the full implementation of the reforms of 2002 through 2004.

The report is available here: WCIRB Report on December 31, 2011 Insurer Experience

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