State Fund To Stand Pat On Overall Rates

As California's State Compensation Insurance Fund continues bleeding premium and market share, it announced yesterday that it would in the aggregate keep its 2008 collectible rate level unchanged from this year. The rates, which adopt the Workers' Compensation Insurance Bureau's recommended changes in individual class loss costs, apply to both new and renewal workers' comp business.

"Individual employers will see differences in their pricing due to changes in their classification expected loss costs, their experience modifications, and other changes in rating plan features," a State Fund news release touting the rate filing states. Overall, however State Fund's "average collectible rate level" will be unchanged, the insurer stated in a carefully worded news release.
Many insureds have seen their premium levels jump dramatically due to changes in expected loss costs and, as Workers' Comp Executive reported last month, that trend will continue in 2008.

State Fund also noted that employers with premiums between $1,000 and $59,999 and with superior safety records will continue to receive a 10% credit.

The Bureau has recommended that that insurance commissioner increase average pure premium rates by 5.2% on Jan. 1, 2008. A decision on the recommendation is expected tomorrow. Few other carriers have filed their rates for January, preferring to wait for the insurance commissioner to make a final decision. Pure premium rates are only advisory and carriers are free to price their policies as they like.

From: Workers Comp Executive (www.wcexec.com)