Dianne Oki To Retire From SCIF

Fund Board Chair Jeanne Cain announced the Fund has hired a nationally-recognized consultant to lead a nationwide search for a new State Fund president.

Ms. Cain also said that Neal Conolly, of CP Associates, will conduct a review of the Fund's operations, in order to provide the board and the new president with recommendations for the Fund's future direction.

"Neal is a well-known expert in the workers' compensation industry," Ms. Cain said, "having led the revitalization and re-engineering of the State Fund of New York from 1997 to 2001 and having more recently been the acting CEO of a national p-c carrier, Frontier Insurance Company in rehabilitation."

She noted that in addition to leading the national search for a new president, Mr. Conolly will conduct an "extensive review of the Fund's operations, searching for efficiencies and other opportunities for improvement, as California's workers' compensation market begins to implement the recently passed reforms and add capacity and choice for the California business community.

Ms. Cain said recent reforms pushed by Gov. Arnold Schwarzenegger "will permit the Fund to return to its traditional role as a solvent, stable and low cost provider of workers' compensation insurance for business in California."

California Insurance Commissioner John Garamendi said in a statement: "We wish Dianne Oki well on her retirement. She has had a long and distinguished career at the State Fund. We look forward to working with Neal Conolly in his review of the organization."

The commissioner promised he would "continue to work with the State Fund board and staff to ensure that the recent reforms are implemented in ways that improve California's workers' compensation system for the benefit of all employers and truly injured workers."

Ms. Oki said, "I am extremely proud of what State Fund accomplished during my tenure, especially the way we managed the dramatic changes in our industry over the last few years.

"In an incredibly short period of time, the workers' compensation market underwent a significant shakeout and consolidation, making State Fund the largest insurer in the state, with a market share of more than 50 percent."

She noted that the industry has seen major legislative and regulatory change during that period. "I am also pleased to bring my career to a close assured that State Fund is financially sound with solid reserves and surplus that has doubled within the last two years."

She said the impending implementation of the reform legislation signed into law last year "provides me with an opportunity to pass the reins to a new leader of the Fund, as it begins another significant and lengthy period of change."