California's largest comp insurer announces 'zero net increase' in costs

The State Compensation Insurance Fund has done something different in its rate filing with the California Department of Insurance. It filed its first ever tiered rating plan.

While rates will increase for some classifications, the filing calls for a "zero net increase in overall rates." Officials say the move will expand State Fund's rate ranges and improve the organization's ability to "provide the right price for the right risk."

The new rates take effect for policies renewing or incepting on or after Sept. 1. Underwriters will be able to begin quoting under tiered rating Aug. 1.

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"The new rate structure allows us to improve pricing accuracy for each risk, resulting in rates that fairly reflect the risk characteristics and experience of each business," said Tom Rowe, president and CEO. "State Fund's role in California's economy is to provide the state's businesses with a strong, stable and fairly priced choice for their workers' compensation insurance. We expect our new pricing structure will appropriately serve more California employers."

Read more at the WorkersComp Forum homepage.

July 12, 2012

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