Written premium for 2021 was 1.4% below that for 2020 and is the lowest since 2012, a new report shows.
The Workers’ Compensation Insurance Rating Bureau of California issued its quarterly report on written premium, which declined sharply beginning in the second quarter of 2020 due to the economic downturn resulting from the pandemic.
The modest decrease in written premium for 2021 is driven by continued insurer rate decreases offsetting growth in employer payroll, according to the WCIRB.
Written premium for the first quarter of 2022 was 22% above that for the first quarter of 2021 and 5% above that for the first quarter of 2020, the bureau noted.
“The average charged rate for the first quarter of 2022 is 3% below that of 2021 and is the lowest in decades,” the report states.
In its Sept. 1 filing, the WCIRB proposed an average 7.6% increase in advisory pure premium rates. In his decision on the filing, Insurance Commissioner Lara did not approve any change in the average advisory pure premium rate.
Was this article valuable?
Here are more articles you may enjoy.
Interested in Pricing Trends?
Get automatic alerts for this topic.