Calif. Rate Bureau: Cut Comp Premium 2.9 Pct.
By Daniel Hays
NU Online News Service, Sept. 30, 1:22 p.m. EDT?An industry rate setting group recommended yesterday that California's insurance commissioner cut workers' compensation premium rates by 2.9 percent.
The advice from the non-profit Workers' Compensation Insurance Rating Bureau came at a hearing before Commissioner John Garamendi in San Francisco.
A spokesperson for the bureau, Jack Hannan said the agency had "amended [its] filing for Jan. 1, 2004 to reflect an average pure premium rate reduction of 2.9 percent in lieu of the 12 percent [increase] we originally filed for back in July," on July 30.
The proposed cut would reduce a 7.1 percent increase that went through after the bureau recommended it in July 1. Whatever the eventual rate set by the commissioner it is merely an advisory for the California market, which was deregulated in 1995.
Mr. Hannan said that Dave Bellusci the bureau's chief actuary and Robert Mike, its president, spent about a half hour going over their amended filing based on their evaluation of the state's newly-legislated reforms to its $29 billion comp system that are designed to save $4 billion.
Mr. Hannan said details of the bureau's findings would be available online at www.wcirbonline.org.
Mr. Garamendi said he contemplates implementing a greater cut of four percent when he issues his rate advisory in October. In the interim, a spokesperson for the department said he has asked the WCIRB to come back with more detailed calculations factoring in the potential savings to comp insurers from portions of the legislation designed to restrict treatment costs.
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