Rates filed by workers' compensation insurers in California have fallen 37.7 since legislative reforms took effect in 2004, Insurance Commissioner John Garamendi reported yesterday.
However, he noted that decreases in the actual rates charged to employers still fall far short of the commissioner's non-binding recommended rates. The California Workers' Compensation Insurance Rating Bureau reports that actual rates charged to employers by insurers decreased by 32 percent between January 2004 and Sept. 30, 2005.
Mr. Garamendi announced that a list of the cost savings by insurance carriers was sent yesterday to legislative leaders. He noted that during this same period, he had recommended insurers cut rates by 46.24 percent, based on his analysis of the savings provided by legislative reforms of 2004.
"The reforms have worked to cut the enormous costs within the system that have so burdened employers," said Mr. Garamendi. "However, much remains to be done. Insurers have not yet passed on enough of the significant savings to employers. This must be done more quickly to help continue the rejuvenation of our California economy."
The commissioner assesses the state of the workers' comp system and issues a pure premium advisory rate twice each year. While many insurers use this as a benchmark, they are not required to follow the recommendation.
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