"The positions affected by this plan are in areas where work has been greatly reduced or has disappeared over time as business processes have evolved," the message said. "These changes will not affect service levels or our ability to respond to increased demand for our services."
Established by the California Legislature in 1914, State Compensation Insurance Fund was the nation's largest workers' comp insurer several years ago. It now ranks sixth in terms of net premiums written, according to A.M. Best.
Earlier this year the state fund began a geographic restructuring plan and consolidated operations into fewer locations "significantly reducing our footprint," the message said. That move is anticipated to generate $200 million in annual savings while the staff reductions are expected to cut $150 million in annual operating costs.
"The combined $350 million in annual savings will help manage the cost of workers' compensation insurance for all California employers," the website said. "Over time, State Fund will benefit from greater market stability due to an improved ability to provide fair prices, enhanced productivity, and excellent service."
Read more at the WorkersComp Forum homepage.
November 3, 2011
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