California Public Self-Insured Workers’ Comp Claims Fell Last Year, But Losses Hit New Highs

OAKLAND, Calif.--(BUSINESS WIRE)--For the third consecutive year, both the number and frequency of work injury claims reported by California’s public self-insured employers declined last year, even as total paid and incurred workers’ compensation losses continued to rise, according to a new California Workers’ Compensation Institute (CWCI) review of data compiled by the state Office of Self-Insurance Plans (OSIP).

OSIP’s summary of public self-insured claims experience, issued two weeks ago, provides preliminary workers’ comp claims data for fiscal year (FY) 2024/25, covering the 12 months ending June 30, 2025, and updated data on claims reported over the prior four years. The summary includes claims reported by cities and counties, school, fire, transit, utility and special districts, and joint powers authorities.

Public self-insured entities reported that they covered nearly 2.26 million California workers in FY 2024/25, a 3.3 percent increase from the prior year, while total wages and salaries for the public self-insured workforce rose to $189.2 billion, up 8.6 percent year over year. Despite the growth in the workforce, the number of public self-insured claims in the initial report edged down slightly to 117,190, a decline of 0.8 percent from the total noted in the FY 2023/24 first reports. After adjusting for the change in the workforce, CWCI calculated an overall claim frequency rate of 5.2 claims per 100 public self-insured employees (2.4 medical-only and 2.8 indemnity claims per 100 employees). This marked the third consecutive annual decline and tied the 10-year low recorded in FY 2019/20.

While claim volume and frequency fell, public self-insured claim costs continued to rise. Total paid losses at first report for FY 2024/25 claims increased to $594.9 million, up 7.6 percent from the prior year, which exceeded the previous record set during the pandemic-era surge in FY 2021/22. The average paid amount per claim rose to $5,076, which was an 8.4 percent increase year over year and nearly 68 percent higher than the 10-year low recorded in the first reports for FY 2015/16 claims.

Medical costs were the primary driver of the increase. Average medical payments in the initial reports rose 13.1 percent to $2,154, the third consecutive double-digit increase and a 10-year high. Average indemnity payments increased 5.3 percent to $2,922, continuing a long-term upward trend that has seen indemnity costs climb nearly 87 percent over the past decade.

First report incurred losses (paid amounts plus reserves for future payments) were also up last year, totaling more than $1.78 billion, 5.8 percent more than in FY 2023/24. The average incurred loss per claim in the initial reports increased 6.6 percent to $15,225, as average incurred medical rose 7.6 percent to $7,733, while average incurred indemnity rose 5.7 percent to $7,492.

CWCI notes that first report data offer an early snapshot of new claims and will continue to develop over time. More mature data on older claims confirm ongoing growth in both paid and incurred losses. OSIP’s FY 2024/25 summary of public self-insured data, as well as historical reports dating back to FY 2000/01 are available on the California Department of Industrial Relations website here.