Cost of Developing Insurance Leads Could Fall in California

People in the business of developing insurance leads will benefit from lower fees in California in the coming months, with help from some recently announced efficiency upgrades.

According to the state's insurance commissioner Steve Poizner, his office has been able to cut its state operations budget by 15 percent, resulting in the lower fees. He indicated that his office will collect about $23.8 million in agent fees in the coming fiscal year, a reduction of about $2.6 million over the previous one.

The Department of Insurance also noted that the amount of fees it collects is 19.5 percent lower than in fiscal year 2006-2007.

Poizner also noted that insurance agents have now seen three reductions in fees under his watch, with total annual savings of $3.5 million expected on license renewals alone. The lower fees will apply to brokers, adjusters and insurance agents.

The office is also expecting ratepayers to save $3.8 million with help from being able to reduce fraud assessment and overall operating costs. Poizner indicated that he is also seeking the end of an insurance surcharge that had been enacted at a time when there was a larger backlog of complaint investigations.