The Legislative Analyst estimated a 3% reduction in premiums in the coming fiscal year.
Garamendi came out with a 21% figure but I think over this and next year.
Published 12:27 pm PDT Friday, May 28, 2004
[Updated at 4:35 p.m.] Setting a benchmark test for two years of cost-cutting legislation, Insurance Commissioner John Garamendi called Friday for workers' compensation insurance rate cuts of nearly 21 percent starting July 1. "California is now on the down escalator," Garamendi said at a door factory in North Highlands. "Now insurance companies have no reason whatsoever not to pass on to the businesses of California a 20.9 percent reduction in the cost of claims and their premiums."
Garamendi held a news conference to announce a new pure premium advisory rate, a benchmark that many workers' comp insurers use in setting the cost of their policies.
His suggested cut is based on two years of legislation designed to curb skyrocketing increases in workers' comp insurance prices and is aimed at policies sold or renewed starting July 1.