California workers’ compensation written premiums in calendar years 2022 through 2025 were relatively stable compared to the large swings that occurred during the pandemic, a new report shows.
The Workers’ Compensation Insurance Rating Bureau of California published its latest Quarterly Experience Report, an updated look at statewide insurer experience valued as of Dec. 31, 2025.
The WCIRB report shows average charged rates have declined steadily since 2014, reaching a historical low in 2025, and that smaller decreases in the past two years suggest this trend may be leveling off.
Related: California Workers’ Comp Bureau Upping Fee for Special Inspections
The California Insurance Commissioner approved an average 8.7% increase in advisory pure premium rates effective Sept. 1, 2025. The WCIRB proposed an average 10.4% increase in the Sept. 1, 2026 pure premium rate filing.
The projected loss and allocated loss adjustment expense ratio for accident year 2025 was consistent with 2024. Recent increases in loss and ALAE ratios are mostly due to sharp increases in average medical costs, average ALAE costs and indemnity claim frequency, particularly for cumulative trauma claims, the WCIRB report shows.
Related: Report: California Comp Combined Ratio for 2024 Highest in 20-Plus Years
The combined ratio rose 3 points in 2025 to its highest level in over 20 years. According to the report, the recent increases were driven by higher claim frequency and higher loss and loss adjustment expense costs, with relatively stable earned premium.
“Combined ratios have exceeded 110% for the past five years,” the report states. “The last sustained period above 100% was prior to the Senate Bill No. 863 (SB 863) reforms.”
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