The largest workers’ compensation insurer in Colorado expects to continue to lower rates in 2022.

Pinnacol Assurance announced plans to lower rates an average of 11 percent for its more than 53,000 policyholders in the state.

The decrease will be nearly double that for 2021. With decreases in each of the last seven years, rates have dropped a total of 40 percent.

The company also announced plans to issue about $40 million in general dividends to customers in 2022.

“Pinnacol is proud to be offering it’s largest rate decrease in more than a decade,” said Phil Kalin, president and chief executive officer. “We’re in a position to do this — and to have offered sizable general dividends to our customers for the past seven years — as a result of our financial strength.”

The rate change will vary based on the characteristics of each business and take into account classification codes, payroll and safety experience.

Pinnacol Assurance also returns to customers a portion of company surplus. The company announced its intent to issue about $40 million in dividends in 2022. The dividends will be based on 2021 financial results, set in February and issued no later than April. 

Pinnacol Assurance issued $50 million in dividends in 2021, nearly $1.5 million of that going to businesses based in Mesa County. Pinnacol has issued $370 million in dividends since 2016.

“The adequacy of our rates is crucial to Pinnacol’s financial strength, our ability to compete and the stability of Colorado’s workers’ compensation marketplace,” Kalin said.
“We continue to be pleased to offer the lowest possible rates to our customers while maintaining our financial viability.”