San Francisco, CA - State Compensation Insurance Fund today announced it will hold the line on any increase in collectible premium and not file for a mid-year rate increase. Instead, California’s largest provider of workers’ compensation insurance will revise its rating plan to provide underwriters greater flexibility to reward better-performing accounts.
The revisions - which should reduce average prices for better-performing small and midsized accounts - will apply to new and renewal workers’ compensation policies with an effective date on or after July 1, 2010.
“We understand how challenging the current economic climate is, and we are trying to support California’s businesses as they manage through this difficult time,” said Doug Stewart, Interim President and CEO of the carrier which currently insures approximately one-in-five California businesses.
State Fund premium levels have fallen significantly since 2003, when Governor Arnold Schwarzenegger and the Legislature began implementing policy reforms that lowered premiums. State Fund’s conservative long-term approach to pricing, as well as its financial strength and open door policy, ensures a leading role for the carrier in the state’s workers’ compensation insurance industry.
EDITOR’S NOTE: Established in 1914 by the state legislature, State Fund is California’s largest provider of workers’ compensation insurance and a vital asset to California businesses. Completely self supporting, State Fund plays a stabilizing role in California’s economy by maintaining an open door policy that ensures that all employers have a strong and stable option for their workers’ compensation needs.
