The largest workers’ compensation insurer in Colorado expects to lower rates in 2021.
Pinnacol Assurance announced plans to lower rates an average of 6 percent for its more than 57,000 policyholders in the state.
“We understand that to many of our policyholders, even a small decrease in rates can make a big difference during historically challenging economic conditions,” said Phil Kalin, president and chief executive officer.
The rate change will vary based on the characteristics of each business, but is expected to total nearly $30 million in lower premiums. The decrease will take effect Jan.1.
The change also reflects an evaluation of marketplace conditions and external economic factors, including the coronavirus pandemic. Pinnacol Assurance has lowered rates for six straight years.
“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.
Pinnacol Assurance also distributes general dividend checks, a portion of company surplus returned to customers. Earlier this year, the company distributed $70 million — $2.2 million of that to Mesa County employers The company announced it anticipates issuing general dividend checks in 2021. A decision is expected in February.