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 Employers Direct Insurance Company Again Lowers Its California Workers’ Comp Rates Bringing Total Rate Reduction to 20.9% Since July 2003 Westlake Village, CA – June 8, 2004 – Employers Direct Insurance Company (EDIC) today announced another round of workers’ compensation rate reductions for California employers, bringing the total decrease to 20.9% from a year ago. The latest rate reduction is effective immediately for employers with effective dates of June 10, 2004, or later. Employers Direct is a California-based specialty carrier that insures employers who pay at least $75,000 per year in annual workers’ compensation premiums. “This latest round of reductions is in direct response to the reforms passed by the legislature under the leadership of Governor Schwarzenegger,” stated James E. Little, Chairman/President and CEO of Employers Direct. Little also pointed out that the 20.9% reduction is the full amount requested by Insurance Commissioner Garamendi. “This is more than double the 9.7% rate decrease that the State Compensation Insurance Fund will provide to its policyholders,” Little added. “While the State Fund, like us, is now making a 7% rate reduction, their action is not effective until July 1, which means that employers with policy effective dates in June 2004 will not see the benefit of the latest State Fund rate reduction until next year.” Employers Direct’s rate reduction will immediately reduce premiums for employers with policy effective dates of June 10, 2004, or later. “Since the reforms are already partially in effect, we requested that the California Department of Insurance allow us to make our rate reduction available as soon as possible because it is the fair thing to do for the huge number of California employers with workers’ comp policy effective dates between June 10 and June 30,” Little said. “The amount of energy, commitment, and sacrifice by all of the parties to bring these reforms about was a milestone in modern California history and we want the Governor, legislators, Insurance Commissioner, and employers to know that there are insurance companies willing to step up to the plate and do the right thing,” said Ron Groden, Vice Chairman and Co-Founder/CFO of Employers Direct. He also points out that Employers Direct is a direct writer and its costs are lower because it does not have to pay the large commissions that brokers charge to sell workers’ comp insurance for the State Fund and most other carriers. “We believe the corner has turned in California workers’ comp for those employers and carriers that are willing to work together,” said Little. “Fortunately, as a newer company, we can get those savings to our policyholders immediately, while the carriers that experienced the cut-throat competition of the late 1990’s may need to keep a portion of the reform savings to make up lost ground on their balance sheets.” About EMPLOYERS DIRECT INSURANCE COMPANY Employers Direct Insurance Company is California's only investor-owned direct writer of workers' compensation insurance - with no agent or broker affiliation. Founded in 2003, Employers Direct has been widely accepted by business owners throughout California as a result of providing highly competitive rates, claims services designed to fight fraud and abuse, and loss prevention services that assist employers to create safe work environments. Employers Direct is proud that a growing number of California's best-run privately-held companies count themselves as policyholders. Niche industries include hotels, restaurants, country clubs, new car dealers, manufacturing companies, specialty supermarket chains, and retailers. Visit Employers Direct online at www.employersdirect.com Contact: Employers Direct Insurance Company Stephanie Hlad 818-575-8545 (Day) shlad@employersdirect.com |
