Pinnacol to lower workers’ comp rates
Colorado businesses should see a reduction in their workers’ compensation insurance rates next year.
Pinnacol Assurance, a quasi-governmental company that supplies a large portion of the state’s workers’ compensation insurance, announced this week that its 2017 rates will decrease by about 3.2 percent for its policyholders.
The company, founded about 100 years ago as Colorado’s workers’ compensation insurer of last resort, said it is able to offer the reduced rates because of a good financial performance this year, favorable claims trends and a strong state economy.
Along with the reduction, the company is issuing a general dividend to its members of about $50 million, much better than the $30 million in dividends the company paid out this year.
“Being a good steward of our policyholders’ premiums includes giving back when we’ve been successful,” said Phil Kalin, Pinnacol president and chief executive officer. “Putting money back into Colorado employers’ pockets through a rate decrease and general dividend is one way for us to help them succeed and to keep the state’s economy strong.”
The company said the $50 million dividend is contingent on not seeing a financial loss in the fourth quarter of this year. If that doesn’t happen, the company’s board will set the exact amount in February and disburse the dividend in April.
The rate reduction, which is to be effective on Jan. 1, surpasses the Colorado Division of Insurance’s recommended 2.4 percent decrease in rates.
The company said this is the second consecutive year it has issued a dividend, adding that since 2005 it has returned more than $506 million in dividends to policyholders.
The company provides coverage to about 60 percent of the state’s employers, more than 11,000 of which are located on the Western Slope.