The WCIRB projects a preliminary ultimate accident year combined loss and expense ratio of 103 percent for 2014. Of this, 61 percent is attributable to the indemnity and medical loss ratio and 42 percent is attributable to the loss adjustment and other expense ratio.
Like the projected 2014 loss and the allocated loss adjustment expense (ALAE), this projection is primarily a result of increased premium levels and relatively low claim severity growth in 2014, according to the report.
