This Just In ... WCIRB Report: California Workers’ Comp Losses Exceed Premiums in 2024
The Workers’ Compensation Insurance Rating Bureau of California (WCIRB) released its annual Losses and Expenses Report on June 30, 2025, revealing that total system costs in 2024 once again exceeded premium collected—a growing concern for insurers, brokers, and employers navigating an increasingly costly environment.
According to the report, California workers’ compensation losses and expenses totaled 108% of earned premium in 2024. In practical terms, for every dollar collected in premium, insurers paid out $1.08 in claims and administrative costs—marking the third consecutive year of underwriting losses.
Key cost drivers include:
- Rising medical inflation, particularly for hospital and outpatient services
- Increased claim severity, especially in long-tail and cumulative trauma cases
- Higher administrative expenses, driven by litigation, compliance, and utilization review
While claim frequency remained relatively stable, the report highlights a troubling trend: severity is increasing, and the complexity of claims—especially those involving mental health or delayed treatment—is adding to system strain.
The WCIRB noted that these trends could influence future rate filings and classification code adjustments, especially for high-risk industries like construction, logistics, and healthcare.
For employers, the findings underscore the importance of proactive claims management, robust safety programs, and close coordination with brokers to mitigate rising costs and avoid surprises at renewal.
The full report is available at wcirb.com and will inform the Bureau’s upcoming recommendations to the California Department of Insurance.
This Just In ... WCIRB Report: California Workers’ Comp Losses Exceed Premiums in 2024
WCIRB 2025 Annual Conference: Key Takeaways for California Workers’ Comp Stakeholders
Mid-Year Check-In: IRMI’s 2025 Workers’ Comp Watchlist Highlights Key Shifts
Worker Classification in the Gig Economy: What Employers Need to Know in 2025
The information presented and conclusions within are based upon our best judgment and analysis. It is not guaranteed information and does not necessarily reflect all available data. Web addresses are current at time of publication but subject to change. SmartsPro Marketing and The Insurance 411 do not engage in the solicitation, sale or management of securities or investments, nor does it make any recommendations on securities or investments. This material may not be quoted or reproduced in any form without publisher’s permission. All rights reserved. ©2025 Smarts Publishing. Tel. 877-762-7877. https://smartspublishing.com