California-based Employers Direct Insurance Company (EDIC) is now applying credits on workers’ comp premiums, which when combined with rate reductions, equals a pricing decrease of nearly 40% in “out-the-door” premiums to their policyholders since mid-year 2003.
The latest round of pricing reductions follows a recent report from the Workers’ Compensation Inspection Rating Bureau (WCIRB) confirming that workers’ comp reforms are working as Governor Schwarzenegger promised.
“We are pleased to pass these significant savings on to California employers,” said James Little, chairman & CEO of Employers Direct Insurance Company. “The intent of the reforms passed last year was to bring quick relief to California businesses. Due to years of skyrocketing workers’ comp costs, we witnessed an alarming migration of businesses moving out of California, taking valuable jobs with them. Now because of SB 899 and other reform laws passed in 2003 and 2004, times are changing. By July of this year, it looks as if rates will be similar to those over a decade ago, which is the payoff the Governor was looking for — keeping employment in California by lowering the cost of doing business here. We plan to continue to mirror the true intent of the reforms championed by the Governor.”
“In making these reductions, we looked at our own actuarial and claims experience together with the recent findings from the WCIRB on insurer loss and premium experience,” added Ronald Groden, vice chairman & CFO of Employers Direct Insurance Company. “There is no question about it, the favorable effects of workers’ comp reform on claims loss experience are so compelling that we believe these price breaks are completely justified at this time.”
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