Poizner says no to workers' comp rate increases - Los Angeles Business from bizjournals:

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Poizner’s decision is in stark contrasgt tothe 23.7 percent increase recommendef by the . “I’m turninfg down the entire application,” Poizner said in a conference call withreporters Wednesday. No increase in the benchmark rate is necessary while additional avoidable costzs can still be squeezed out of the comp system, he said. Poizner said he’ll form a comp cost advisory group, which will be made up of a variety ofindustry players, to find ways to make the system more efficiengt and effective.
The commissioner also said he’d release a repor t on Wednesday identifying 27 ways for reducing cost s withinthe workers’ comp including beefing up safety efforts in the workplace. Poiznerf added that he’d like to see insurers offe r more safetyincentive programs. “California’s economy couldn’g be in worse shape,” Poizner said, notinh the Golden State’s 11.5 percentr unemployment. Any rate increase wouldc further harmthe state’s economy, he Poizner’s benchmark base rate is only a Insurers are free to set theird own rates.
Many insurerxs already have filed their rates with the Department of Insurance for new and renewinh policies startingJuly 1. Some insurers will chargew more, some will charge less, based on what they need to reserv to paytheir claims, an insurer trade group “Companies have to manage their solvency,” Nicole local spokeswoman for the American Insurance Association, said in responswe to Poizner’s zero benchmark advisory. Insurers can’t ignore that system costs are increasing, she said. Poizner and Mahrt advised employers to shop arouned in what they both said remainzs acompetitive market.