Calif. State Fund Consolidating Business Operations

December 9, 2010

California State Compensation Insurance Fund, the state’s largest provider of workers’ compensation insurance, announced it is consolidating its business operations, a move it expects will save nearly $200 million in operating costs.

Beginning in September 2011, State Fund will significantly reduce the size of its home office presence in San Francisco and relocate many corporate functions to the offices in Pleasanton, Vacaville, and Sacramento. Over the next three years, State Fund will also consolidate its regional claims and underwriting function into central locations in Eureka, Redding, Sacramento, Stockton, Pleasanton, Fresno, Bakersfield, Monterey Park, Riverside, and Santa Ana.

“In recent years, we have made strides in improving services, enhancing our customer focus, and making it easier to do business with us. Now we are taking several steps to achieve our goal of greater efficiency and long term operational stability,” said State Fund President and CEO Tom Rowe.

During the relocations, State Fund does not expect all employees to remain with the organization. “This plan addresses our need to reduce our real estate footprint and at the same time it re positions more of our staff in areas where it more economical to do business and our salaries are more in line with the cost of living,” said Jennifer Vargen, communications director for State Fund. “These moves put approximately 1,400 jobs in motion. All impacted employees are being offered positions but we understand that not everyone will choose to relocate and we will emerge a leaner organization.”

In a letter to brokers, Rowe assured brokers, “We are committed to always being here for you and your clients and will continue to offer local claims liaisons and marketing representatives as well as other State Fund services you’ve come to rely on, like safety and auditing.”

State Fund said the transition should be seamless for customers.

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