State Fund To Reduce Workers’ Compensation Premiums
The State Compensation Insurance Fund, California's largest workers' compensation insurance carrier, on Thursday announced it would reduce premiums by an average of 10% for policies beginning July 1, the Contra Costa Times reports. The reduction represents the company's sixth consecutive rate cut (Contra Costa Times, 6/2).
On Wednesday, Insurance Commissioner John Garamendi (D) recommended a 16.4% rate reduction for policies that renew or begin July 1. State Fund spokesperson Jim Zelinski would not comment on why the rate reduction was less than the recommendation but said the company believes the "rate filing is fair and sound from an actuarial standpoint" (Rauber, San Francisco Business Times, 6/1).
State Fund's premiums have been reduced 44% -- including the 10% reduction -- since workers' compensation reforms were adopted in 2003 and 2004 (Chan, Sacramento Bee, 6/2). Employers who renew their policies in July or later this year will see a cumulative average savings of 24.4% compared with their expiring policies (San Francisco Business Times, 6/1).