The 2003 California reform of workers? compensation meant that employers have enjoyed reduced premiums for the last few years ? average premiums have dropped 62% since July 2003. Their luck may finally be running out however ? Insurance Commissioner Steve Poizner has given the go-ahead to 200 insurers to raise rates by as much as 5% after January 1. Companies are not required to heed Poizner?s recommendations but the tradition thus far has been to do so. The rate hike shows that Poizner has recognized the vitality of the California workers? compensation market. Mark Webb, vice president at Employers Direct Insurance, Co. points out the hidden message the hike represents: ?make sure you have a commitment to safety.? Employers will need to reduce claims filed (i.e. be more accident-free) to keep compensation prices down.
See "California employers may see a 5% rise in workers? comp insurance", Marc Lifsher, Los Angeles Times, October 26, 2008