California Insurance Commissioner John Garamendi on yesterday called on workers' compensation insurers to pass on savings provided by legislative reforms to policyholders, recommending an 18 percent reduction in the pure premium rate.
Changes enacted by the legislature over the past few years have begun to work, according to the commissioner. "California's workers' compensation system costs are no longer on the up escalator, and the cost of claims is on the down elevator in a rapid descent," he said.
Mr. Garamendi said he had based his recommendation on an assessment of the workers' compensation system based on hearings he held, "as well as extensive actuarial analysis of the costs of the system."
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