- or call 866.374.8500
|
|
 Employers Direct Slashes Workers' Comp Premiums Nearly 40% for California Businesses Legislative Reform and Solid Evidence from the Recent WCIRB Report Compels Work Comp Insurer to Give Employers Significant Price Break AGOURA HILLS, CA – May 10, 2005 – Employers Direct Insurance Company today announced that it is now applying credits on workers' comp premiums, which, when combined with rate reductions, equal a pricing decrease of nearly 40% in "out-the-door" premiums to policyholders since mid-2003. The latest round of pricing reductions follows a recent report from the Workers' Compensation Inspection Rating Bureau (WCIRB) confirming that workers' comp reforms are working as Governor Schwarzenegger promised. "We are pleased to pass these significant savings on to California employers," said James E. Little, Chairman/President and CEO of Employers Direct Insurance Company. "The intent of the reforms passed last year was to bring quick relief to California businesses. Due to years of skyrocketing workers' comp costs, we witnessed an alarming migration of businesses moving out of California, taking valuable jobs along with them. Now because of SB 899 and other reform laws passed in 2003 and 2004, times are changing. By July of this year, it looks as if rates will be similar to those of over a decade ago, which is the payoff that the Governor was looking for – keeping employment in California by lowering the cost of doing business here. We plan to continue to mirror the true intent of the reforms championed by the Governor." "In making these reductions, we looked at our own actuarial and claims experience together with the recent findings from the WCIRB on insurer loss and premium experience," explains Ronald Groden, Vice Chairman and Chief Financial Officer. “There is no question, the favorable effects of workers' comp reform on claims loss experience are so compelling that we believe these price breaks are completely justified at this time." 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 |
