WCIRB: 2024 Losses, Expenses in California Workers’ Comp 108% of Earned Premium

Total losses and expenses in California’s workers’ compensation system incurred in 2024 were $16.7 billion, or 108% percent of earned premium, a report out today shows.

The Workers’ Compensation Insurance Rating Bureau of California released , an overview of statewide insurer losses and expenses for the 2024 calendar year.

In calendar year 2024, earned premium totaled $15.5 billion, down from $15.8 billion of premium earned in 2023. Total insurer paid losses in 2024 were $9.5 billion, or 61% percent of calendar year earned premium, according to the WCIRB.

Based on insurer statutory annual statement information, the bureau estimates policyholder dividends incurred in 2024 to be 0.7% of 2024 earned premium, resulting in an underwriting loss of $1.3 billion, or 8.4% of premium.

The report shows that $5.2 billion, or 54% of total loss payments, were for medical benefits last year. Additionally, $4.4 billion, or 46% of total loss payments, was for indemnity benefits (including vocational rehabilitation benefits).

Summary of Medical Losses Paid by Medical Category:

Category	CY 2023	CY 2024
Payments Made Directly to Injured Workers	$1.56 billion	$1.69 billion
Physician Services	$1.26 billion	$1.39 billion
Hospital (Inpatient and Outpatient)	$0.53 billion	$0.58 billion
Medical-Legal Evaluations	$0.40 billion	$0.44 billion
Medical Supplies and Equipment	$0.27 billion	$0.28 billion
Medicare-related Payments	$0.24 billion	$0.24 billion
Medical Cost Containment Programs (medical loss only)	$0.11 billion	$0.12 billion
Medical Liens	$0.08 billion	$0.10 billion
Pharmaceuticals	$0.06 billion	$0.06 billion
Other	$0.19 billion	$0.25 billion
Total Medical Losses Paid	$4.7 billion	$5.2 billion