By Daniel Hays
Increased competition and pressure from California's insurance commissioner will probably erode profits in the state's workers' compensation insurance sector, a leading research firm warned last week.
The forecast from Bank of America Securities Equity Research followed Commissioner John Garamendi's remarks that he will investigate carriers' handling of workers' comp claims at a May 19 hearing. In light of that competition and pressure from Mr. Garamendi, “California workers' comp insurance is likely to become less attractive and profitability will likely erode,” the analysts wrote.
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