Garamendi Calls For Bigger Reductions In Workers’ Comp Insurance
Sacramento, CA — State Insurance Commissioner John Garamendi is calling for bigger cuts in the price of workers´ compensation insurance.
He says insurers´ cost of paying claims should drop 18 percent for policies issued or renewed in July.
Garamendi issued a new pure premium advisory rate today. It´s his estimate of insurers´ cost of paying benefits and processing claims.
It doesn´t include profits, overhead, taxes, commissions and other costs, but it often serves as a benchmark for insurers in determining what they charge for the coverage that most employers are required to buy.
Today´s announcement means Garamendi has concluded that claim costs have dropped 36 and a half percent since 2003. That´s when the Legislature began adopting a series of bills to cut the cost of treating employees´ job-related injuries.