Calif. Commissioner Reacts to Latest Workers’ Comp Rate Filing From the SCIF

November 30, 2004

Since July 2003 California Insurance Commissioner John Garamendi has reduced the state’s pure premium advisory rate by 22.6%. This includes his most recent recommendation of Nov. 17, when he lowered the rate by 2.2%. This was a significant reduction from the increase of 3.5 recommended by the Workers’ Compensation Insurance Rating Bureau, and the Commissioner’s third reduction in a row.

On Tuesday, Garamendi commented on State Fund’s latest rate filing with the Department of Insurance:

“Good, but not enough. The reforms signed by Governor Davis and Governor Schwarzenegger are clearly taking hold. As a result, California’s workers’ compensation costs are headed in the right direction – down.

“However, State Fund, with some 55% of the market, must be a leader. Its reduction is good news, but my analysis indicates that with greater efficiencies and planning the State Fund could realize further savings that more closely reflect the more than 22% reduction in loss costs that has occurred within the system since July 2003.”

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