Calif. Private Self-Insured Employers See Drop in Workers' Comp Claims in 2024
Private self-insured employers in California reported a significant decrease in workers' compensation claims in 2024. The total number of claims dropped by 7.4% compared to 2023, reaching 87,360. This marks a four-year low in claim frequency.
The decline was driven by a reduction in both medical-only claims and indemnity claims. Medical-only claims fell to 45,170, a decrease of 6.7% from 2023. Indemnity claims also decreased by 8.2% to 42,190. Despite the drop in claims, paid losses on these claims totaled $353.6 million, a 3.9% increase from 2023. This rise in paid losses, coupled with an increase in the average paid and incurred losses per claim, contributed to higher overall losses in 2024.
The number of employees covered by private self-insured employers also decreased, from 2.34 million in 2023 to 2.25 million in 2024. This led to a claim frequency rate of 3.88 claims per 100 employees, a slight decrease from the previous year.
In summary, while the total number of workers' compensation claims decreased in 2024, leading to a lower claim frequency rate, the cost of these claims increased, resulting in higher paid and incurred losses. The decrease in the number of employees covered by private self-insured employers also contributed to the overall trend.
