In its Quarterly Experience Report, the Workers' Compensation Insurance Rating Bureau of California reported that written premiums were up by 27% due to higher employer wage levels and economic recovery following the COVID-19 pandemic.
The report concluded that:
- California's written premiums for the first six months of 2022 were 27% above that for the first six months of 2021 caused by the economic recovery.
- The average charged rate for the first half of 2022 was 3% below that for 2021, making it the lowest in decades.
- The projected combined ratio for 2021, including COVID-19 claims, is eight points higher than in 2020 and 33 points higher than the low point in 2016.
- The average claim closing rates declined sharply beginning in the second quarter of 2020 due to the pandemic. After bottoming in 2021, average claim closing rates are beginning to increase in 2022.
- Medical service costs per claim increased by 3% in 2021, driven by an increase in the average paid per medical service transaction.
The Impact GMS Has On Your Business
As workers’ compensation rates continue to climb in California, GMS can provide a better rate than what the state has to offer. Our workers’ compensation specialists help minimize your exposure, maintain records, and complete best practices that keep your business compliant with OSHA. Sharee Andrade, GMS’ Senior Director of Risk Management Underwriting expressed, “GMS helps businesses on all levels. We offer a robust workers’ compensation policy that covers 47 out of the 50 states, ensuring you stay compliant with state and federal laws. Our risk management team is yours as well. Our team of experts helps with underwriting, safety protocols within workplaces, and handle the claims process from start to finish.” Contact us today to learn more.