Claim Frequency in California Workers’ Comp Higher in L.A. Area, Study Shows

Claim frequency in California workers’ compensation remains significantly higher in the Los Angeles Basin than in the northern part of the state, a new study shows.

The Workers’ Compensation Insurance Rating Bureau of California released its WCIRB Geo Study 2024, which underscores regional differences in claim characteristics across California.

The study’s findings include:

• Even after controlling for regional differences in wages and industry mix, indemnity claim frequency remains significantly higher in the Los Angeles Basin and significantly lower in the San Francisco Bay Area, a pattern that has remained consistent over the last several years.
• Allocated loss adjustment expenses increased in all regions from policy year 2021 to 2022, with a particularly pronounced increase in Northern California regions. The regions around the L.A. Basin continued to have the highest ALAE, driven by high rates of litigation.
• The share of indemnity claims that involve permanent disability increased slightly from 2021 to 2022 with increases somewhat more common in Southern California.

The study is available in the Research Studies and Reports section of the WCIRB website.