Washington, DC – Steve Schneider, American Insurance Association (AIA) Midwest region vice president, issued the following statement after testifying before the Illinois Senate Committee of the Whole on the effects of the 2011 workers’ compensation reforms and HB 1287, adverse workers’ compensation legislation. Mr. Schneider represented a coalition of insurers which includes AIA, the Illinois Insurance Association (IIA), the National Association of Mutual Insurance Companies (NAMIC) and the Property Casualty Insurers Association of America (PCI).
Mr. Schneider’s statement follows:
“Illinois’ competitive rating law, the first in the nation, has made it the single most competitive state for workers’ compensation insurance. Presently, 333 insurers compete for the right to earn a customer’s business according to the Illinois Department of Insurance and this is a good thing.
“However, HB 1287 would throw out more than three decades of successful workers’ compensation insurance regulation. It would remove considerable flexibility from the marketplace for both insurers and their customers by establishing a price control regulatory scheme. This would add significant burdens and costs to the system. While we’re grateful for the opportunity to address lawmakers on the important issue of workers’ compensation reform, HB 1287 represents the wrong approach.”
Source: AIA