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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