WCIRB Releases Latest Study of Regional Differences in Claim Characteristics

Friday, November 21, 2025 | 0

Southern California continues to have higher frequency and a higher concentration of more complex claims involving medical-legal services and litigation, the Workers' Compensation Insurance Rating Bureau said in its 11th annual study of regional differences in claim characteristics.

The WCIRB said the pattern of significant regional differences in indemnity claim frequency, even after adjusting for wages and industry mix, has remained generally stable. While differences widened slightly in the latest analysis, the 2025 Geo Study shows the same fundamental pattern as prior years.

Claim frequency in the Far North region that includes Yuba City and Redding was 30% lower than the statewide average, compared to 50% above the average in the combined Los Angeles and Long Beach region.

Last year's study found frequency was 20% below average in the Far North region and 35% above average in the Los Angeles and Long Beach region.

Differences in claim severity were more muted, with most regions falling within about 10% of the average. Average severity was highest in the Far North region — about 10% above average — while Sacramento had the lowest severity at roughly 10% below average.

Medical-legal reports accounted for the 11% of paid medical in the 2023 policy year, the highest level since the WCIRB started publishing studies on geographic differences in claim trends. Strong regional differences remain, with medical-legal payments accounting for a larger percentage of medical spending in the Los Angeles basin than elsewhere in the state.

The WCIRB reports med-legal payments were about 14% of medical spending in the Los Angeles and Long Beach; Santa Monica and San Fernando Valley; and San Gabriel Valley and Pasadena regions. The Far North region, including Yuba City and Redding, had the lowest share at less than 7%.

At the same time, more than 32% of indemnity claims in the Santa Monica and San Fernando Valley; Los Angeles and Long Beach; and San Gabriel Valley and Pasadena regions had a medical-legal report. In the Far North region, as well as the Santa Cruz, Monterey and Salinas; and the San Luis Obispo and Santa Barbara regions, fewer than 23% of indemnity claims had a medical-legal report.

Median allocated loss adjustment expenses were also higher in Southern California, particularly around Los Angeles.

The Los Angeles and Long Beach and the San Gabriel Valley and Pasadena regions had median ALAE levels of more than $3,000, about double the $1,400 to $1,600 median ALAE in the combined Tulare and Inyo counties region.

The WCIRB report also found consistent patterns of litigation rates, with Los Angeles and Long Beach having rates of litigation that are about 16% higher than the statewide average. The combined Sonoma and Napa counties region had the lowest share of litigated indemnity claims, about 20% below the statewide average.

The 2025 WCIRB Geo Study and associated materials, including an interactive map, data table and a link to a webinar that was held Thursday, are here.