Filing marks seventh consecutive decrease; cumulative 49% decrease since 2004

SAN FRANCISCO -- State Compensation Insurance Fund filed 2007 workers’ compensation insurance rates calling for a 9% average decrease in collectible premium. The new rates will affect new and renewal workers’ compensation policies with an effective date on or after January 1, 2007. The filing is State Fund’s seventh consecutive rate reduction.

Small employers (annual premiums between $1,000 and $75,000) with superior safety records will continue to receive a 10% workplace safety credit. “As rates decline and premiums decrease, even more employers become eligible for the credit. State Fund is pleased to be able to expand the ability of small employers to qualify for additional savings through the workplace safety credit,” said State Fund President J.C. Tudor.

State Fund rates have fallen steadily since 2003, and now reflect a cumulative savings of 49% below pre-2004 rate levels. Contributing to the 9% reduction in collectible premium is an average 8% reduction in manual rates.

“State Fund is very pleased to continue passing on the significant savings that are directly attributable to the implementation of the Governor’s and the Legislature’s landmark workers’ compensation reform legislation of 2003 and 2004. Small and large businesses alike have benefited from these reform measures. Workers’ compensation costs are coming under control, California is enjoying a robust competitive workers’ compensation market, and State Fund’s market share has decreased significantly since 2004,” Tudor added.

State Fund Board Chair, Jeanne Cain, said “The 9% rate decrease represents significant additional savings for all employers. State Fund played a critical role in providing a market during the tumultuous years of 2000 through 2004. State Fund’s market share is now coming down to a more traditional level and its financial stability is assured. State Fund will continue to lead the way in implementing reforms and passing savings on to the employers of California.”

EDITOR’S NOTE: Created by the California Legislature in 1914, State Fund is a nonprofit, self-supporting, fairly competitive public enterprise that guarantees a permanent workers’ compensation insurance marketplace at cost for California employers. State Fund has acted as both a moderating and stabilizing influence on the workers’ compensation market.