California COVID-19 injury value is projected to be $ 1 billion: WCIRB – Enterprise Insurance
The projected cost of COVID-19 employee compensation for accident years 2020 and 2021 in California is projected to exceed $ 1 billion, 100% for the first time in nearly a decade, according to a disability insurance rating bureau report released Tuesday.
In 2020 and the first half of 2021, nearly 150,000 worker compensation claims were filed for COVID-19, although the total number of claims was offset by a reduction in non-COVID claims, which were down more than 20% year over year from 2020. Premium levels fell sharply in 2020 due to the economic slowdown and ongoing rate cuts, but are expected to increase slightly according to the WCIRB's WCIRB 2021 State of the System Report 2021.
The estimated number of final compensatory COVID-19 claims for the 2020 accident year among California policyholders is more than double that of the Office in its 1. The economic downturn saw the premium hit the eight-year low of 13.9 billion though The office predicts that the total written premium will increase slightly in 2021, it is expected to remain well below the 2014-2019 level at an estimated $ 14.3 billion.
The WCIRB also predicts a steady increase in the average cost of damages through 2022 compared to pre-pandemic levels, with the average cost of damages per claim in 2020 being $ 28,939. The tentative increase is based on temporary disability payments made, and the average compensation is likely to stay high through 2022, according to the office.
Average medical costs dropped to $ 27,940 and continued on a downward trend since 2011 when the average was more than $ 35,000 per incident. However, the projected average cost could be negatively impacted by deferred medical treatment of claims and is expected to increase slightly through 2022, WCIRB said.