California Insurance Commissioner John Garamendi on Wednesday recommended a 16.4% cut in workers’ compensation insurance rates for policies renewing after July 1.
The insurance commissioner’s recommendation is a guideline for insurers as they price workers’ compensation premiums for employers.
It is the fifth straight call for a decrease in the past few years from Garamendi after state reforms enacted nearly three years ago.
If his recommendation is adopted by regulators, Garamendi said workers’ comp rates would be down by 55% since July 1, 2003, following reforms signed by Gov. Arnold Schwarzenegger.
Insurers aren’t arguing. They themselves have recommended an 18.5% decrease in renewal rates.
Garamendi said his proposal takes into account legal challenges to some provisions of the workers’ comp reform that may have a slight impact on costs if litigants are successful in court.
The insurance commissioner is running for lieutenant governor.
