"The
new rates represent an average reduction of 12 percent when
compared to rates in effect since Jan. 1, 2005."
Zenith
Files 12% Reduction in Its California Workers'
Comp Rates
Zenith
National Insurance Corp. reported that its
wholly owned subsidiary, Zenith Insurance
Company, has filed with the California
Department of Insurance its workers'
compensation rates for use in California on or
after July 1, 2005. The new rates represent an
average reduction of 12 percent when compared
to rates in effect since Jan. 1, 2005.
Commenting on
the filing, Stanley R. Zax, Chairman and
President, said, "We continue to see
short-term favorable trends in inflation and
frequency in our California workers'
compensation data, however we will not know
the long-term outcome of our loss costs for
recent accident years with any certainty for
several years. We also will not know the
outcome of the new disability guidelines or
medical networks for several years. We are
continuing with our prudent approach to rate
changes by making adjustments to our
California workers' compensation rates to the
extent of cost changes as the facts and data
evolve. Without the enactment of workers'
compensation reform in 2003 and 2004 our
average California workers' compensation rates
would be about 44% higher today."
