Article ID: 8505469d5456a0e5aceb72399932c0b4edf728a82609d64b703b071b298f1d22
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URL: https://www.businessinsurance.com/california-comp-report-signals-pressure-for-higher-employer-costs/
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California comp report signals pressure for higher employer costs - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers California comp report signals pressure for higher employer costs by Louise Esola Workers Comp Coverage Oct 9, 2026 California employers could face higher workers compensation insurance costs as rising claim frequency, litigation expenses and persistent underwriting losses put pressure on rates, according to a report released Thursday by the Workers’ Compensation Insurance Rating Bureau of California. The bureau’s quarterly experience report, reflecting data through June 30, shows average charged rates edging up to $1.64 per $100 of payroll in the first half of 2026 from $1.63 in 2025, potentially reversing a decade of declines. California’s insurance commissioner approved a 6.6% average increase in advisory pure premium rates effective Sept. 1, following an 8.7% increase a year earlier. Those advisory increases do not translate directly into equivalent increases in employers’ premiums. Among the strongest warning signals: The projected combined ratio for accident year 2025 reached 127%, the highest in more than 20 years, indicating $1.27 in claims and expenses for every premium dollar. Combined ratios have exceeded 110% for five consecutive years. Indemnity claim frequency rose 3.6% in the first half of 2026, following increases of 0.7% in 2025, 8.3% in 2024 and 7.6% in 2023. Cumulative trauma claims have been a major driver, growing from about 18% of indemnity claims in 2022 to more than 25% — an increase of roughly seven percentage points. That growth included litigated claims, claims filed after termination and claims with little initial paid medical activity. Allocated loss adjustment expenses per indemnity claim, excluding medical cost containment costs, increased 11% in 2025. Claims are also closing more slowly, a trend the bureau linked partly to cumulative trauma claims, litigation and increased medical-legal services. Although some projected average claim costs eased in 2025, the bureau cautioned that slowly developing cumulative trauma claims could leave recent estimates understated. Related News Eric O. 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