Workers Compensation Rates in California Going Up

Insurance Journal, Dec 21, 2008

The California Department of Insurance has recently approved rate increases for a number of worker's compensation insurers in the state. The commissioner for the California Department of insurance, Steve Poizer has made a recommendation for a five percent increase in his rate advisory. However, there have been a number of insurers that have made requests for increases that are in excess of this five percent, including:

• The Ace Property and Casualty Insurance Co. with a request for an 8.7 percent increase.
• The Assurance Company of America Company with a request for a 6.2 percent increase.
• The Employers Direct Insurance Co. with a request for a 17.3 percent increase.
• The Federated Rural Electric Insurance Corp. with a request for a 32.1 percent increase.
• The Florists' Mutual Insurance Co. with a request for a 9.5 percent increase.
• The Great American Assurance Co. with a request for a 10.5 percent increase.
• The Maryland Casualty Co. with a request for a 12.1 percent increase.
• The National Interstate Insurance Co. with a request for a 12.8 percent increase.
• The Pacific Employers Insurance Co. with a request for an 8.6 percent increase.
• The Springfield Insurance Co. with a request for a 10.4 percent increase.
• The Ullico Casualty Co. with a request for a 6.7 percent increase.
• The Universal Underwriters Insurance Co. with a request for a 5.7 percent increase.
• The Zurich American Insurance Co. with a request for a 5.8 percent increase.
• The Zurich American Insurance Company of Illinois with a request for a 17.4 percent increase.

The California Department of Insurance has already approved most if not all of these rate increases, which means that there will be changes in the way worker's compensation claims are filed and paid for by many employers throughout the state. You can view the rate filing approvals as of December 1, 2008 by visiting the following link: http://www.insurance.ca.gov/0250-insurers/0800-rate-filings/0100-rate-filing-lists/rate-filing-approvals/index.cfm