State Fund announces positive news for policyholders: we will not file for a mid-year rate increase. Instead, State Fund will give underwriters greater flexibility to reward better-performing accounts by revising our manual rate levels, merit rating and claims free discount programs. The move should reduce average prices for better performing small and midsized accounts. The revisions will apply to new and renewal workers’ compensation policies with an effective date on or after July 1, 2010.
“We understand how challenging the current economic climate is, and we are trying to support California’s businesses as they manage through this difficult time,” says State Fund Interim President and CEO Doug Stewart.
State Fund premium levels have fallen significantly since 2003, when Governor Arnold Schwarzenegger and the Legislature began implementing policy reforms that lowered premiums. Premiums are still 43 percent below pre-reform levels. State Fund’s conservative long-term approach to pricing, as well as its financial strength and open door policy, ensures a leading role for the carrier in the state’s workers’ compensation insurance industry.
State Fund offers high-caliber safety and claims programs. Because we are a vital provider of workers’ compensation insurance in California, State Fund is committed to maintaining its financial strength and open door policy of serving California’s small and large businesses across all industries.
