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California workers’ comp rates rise as combined ratio reaches 20-year high
WCIRB projects a 2025 accident-year combined ratio of 127%, and California’s advisory pure premium increases to $1.65 per $100 of payroll for policies starting on or after Sept. 1.
California is emerging as an early signal of a broader workers’ compensation pricing shift as rates move higher after years of declines, according to Insurance Business.
The Workers’ Compensation Insurance Rating Bureau of California estimated that average charged rates in the first quarter of 2026 were about 6% higher than in 2025, while the state’s combined ratio rose three points in 2025 to its highest level in more than 20 years as claim frequency and loss costs increased. WCIRB projects the 2025 accident-year combined ratio at 127%, its second consecutive year above 120%.
In July, California’s Insurance Commissioner Ricardo Lara adopted an average advisory pure premium rate of $1.65 per $100 of payroll for new and renewal policies incepting on or after Sept. 1, a 6.6% increase versus the 2025 approved rate.
WCIRB had requested a larger 10.4% increase, citing higher cumulative trauma claim frequency, medical costs, and allocated loss adjustment expenses. The advisory rate is not binding, insurers set their own workers’ comp rates.