"Five
companies submitted rate filings to showing decreases ranging
from 10.4 percent to 18 percent"
Workers'
Comp: New Filings Show Sharp Rate Decreases
Workers’
compensation insurers are reducing their rates
dramatically, not pocketing profits, as new
evidence shows that the reforms to the system
are kicking into overdrive. Five companies
submitted rate filings to the California
Department of Insurance showing decreases
ranging from 10.4 percent to 18 percent, and
industry sources say that other filings are
likely to exceed 20 percent.
The five carriers are National Liability and
Fire Insurance Co. (-12 percent), Majestic
Insurance Co. (-13.8 percent), Old Republic
Insurance Co. (-10.4 percent), Preferred
Employers Insurance Co. (-18 percent) and
CompWest Insurance Co. (-15.3 percent).
The largest company is Preferred Employers,
with $191.4 million in written premium,
followed by Majestic, with $92.7 million. Old
Republic has $47.8 million, while National
Liability has $5.5 million and CompWest shows
$1.019 million.
The rate reductions, if approved by the
Department of Insurance, will apply to
policies renewing and incepting July 1.
Earlier this week, California Insurance
Commissioner John Garamendi recommended an 18
percent reduction in the pure premium rate.
