California Workers' Comp Loss Costs Keep Rising Despite Pandemic Disruption, CWCI Report Finds

NewsData.io · United States · Sep 17, 2026

A new California Workers' Compensation Institute study finds that despite a temporary COVID-19 disruption, medical and indemnity claim costs in California's workers' comp system have continued to climb, with medical losses jumping 15.1% at six months for AY 2024 claims. Indemnity losses rose across every accident year and development stage, with growth accelerating sharply after a record 13.52% increase in weekly temporary disability benefit rates tied to post-pandemic wage surges. Construction posted the highest per-claim costs at nearly $50,000 for AY 2023 indemnity claims — 57% above the statewide average — with significant variation across industries and regions. Staffing agencies and clients operating in California, particularly in construction and healthcare, should factor these escalating costs into workforce planning and contract pricing.