Lower Workers Comp Rates Coming To Colorado

Thursday, November 5 2009

Committee Revealed Rates Were 10% Too High

DENVER— After a summer of testimony and review of evidence, the Interim Committee on Pinnacol Assurance found that workers compensation rates were consistently as much as 10% higher than levels recommended by independent actuaries.  

The Colorado Division of Insurance announced that Colorado’s businesses will get some relief thanks to a significant drop of worker’s compensation rates. The 9.7% reduction in rates comes on the heels of a summer of hearings in the Pinnacol Interim Committee which found that rates have been consistently as much as 10% too high.  
 
Senator Morgan Carroll (D-Aurora) was the chair of the Pinnacol Interim Committee: “We are pleased to report significant reductions in workers’ compensation premiums, which is good news for employers, where every dollar counts in this economy.”
 
The Pinnacol Interim Committee supported Representative Su Ryden’s (D-Aurora) bill called known as the “Rate Reduction Act”.  This bill will lower rates for small businesses by directing the insurance commissioner to use the lower of the two rates when comparing recommendations of NCCI (National Council on Compensation Insurance) and an independent actuary, unless there is good cause not to.  The bill will also trigger a surplus dividend to policyholders.
 
Rep. Ryden: “Our proposed law will give us more assurance that business would get the lowest possible rate while maintaining Pinnacol's sound financial footing.”
 
"Colorado employers could see as much as $84 million in reduced premiums for workers compensation insurance, if all insurers implemented the revised loss costs with no further adjustments," said Colorado Insurance Commissioner Marcy Morrison said in the press release.