Work Comp Rates Due to Drop

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California Insurance Commissioner Dave Jones recently announced a recommended work comp rate decrease effective July 1. This is the first drop in rates since 2009, and signals a turn in the market. If this reduction follows past trends, additional reductions will be made in January and beyond.

While the reduction is good news from an immediate savings perspective, it should not be cause for any company to shift attention from its risk management program. The reduction is an external force, one over which no company has control. For long-term profitability, companies must continue to control and manage all risk vulnerabilities to reduce claims and minimize those costs. This positions the company to garner the lowest rates during this period and assures that when rates begin to climb again, low loss ratios will ensure that the company is still paying a reasonable amount of money for its workers’ comp coverage.

To read the entire announcement from The Commissioner’s Office, click here.

 

 

 

 

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