This just in.
The Insurance Commissioner has denied any workers compensation pure loss rate increase. The insurance companies don’t have to accept this and many of the companies have filed their rates for January 1. Most are relatively small with State Fund asking for a little over 5%. See below.
The 1099 issue continues to percolate in Washington. It appears there will have to be an offset of the $17 to $19 billion and this is where the legislation to repeal could come into trouble.
There should be more details next week.
Small Business California
2311 Taraval Street
San Francisco, CA 94116
Friday, November 19, 2010
'NO RATE INCREASE!' SAYS POIZNER Share:
California Insurance Commissioner Steve Poizner has abjectly denied any increase in the workers' comp pure premium rate. This is despite a request for a 27.7% increase from the privately owned Workers' Compensation Insurance Rating Bureau of California.
Saying that workers' comp is like a tax on employers and that the 2004 reforms have not been fully implemented Poizner also acknowledged medical cost inflation and other cost drivers but says carriers have not done enough to control costs.
Poizner also said that he has asked WCIRB to provide more data as to the profitability of carriers and that this should be part of any increase rate consideration. Compline filed a report showing that the industry was profitable in 2009 despite the $1.5B estimated underwriting loss the WCIRB provided, of which State Fund was nearly half. State Fund also represented over 1/3 of the profits carriers had in the line for 2009.
Workers' Comp Executive will have a broader news and analysis story on Monday.