Insurance Commissioner Jessica Altman announced approval of a loss-cost filing, including a 3.02 percent reduction in loss costs. Loss-costs are a component in determining workers’ comp insurance rates paid by businesses, and this reduction should lead to lower premiums for many Pennsylvania businesses.
This loss-cost revision was filed by the Pennsylvania Compensation Rating Bureau (PCRB), an independent bureau that makes filings to the Insurance Department on behalf of companies that write workers’ compensation insurance in Pennsylvania. Workers’ compensation insurance covers the cost of medical care and rehabilitation for injured workers, lost wages and death benefits for the dependents of those killed in work-related accidents.
“This decrease continues several years of loss-cost reductions, further helping businesses in our state be more competitive, and frees up money to spend on other priorities, which is vital as Pennsylvania recovers in the wake of the COVID-19 pandemic,” Altman said. “Under Gov. Wolf’s leadership, the insurance department is working to maintain a vibrant workers’ compensation insurance market, ensuring employers are able to find attractive, cost-efficient workers’ compensation coverage.”
Working with the PCRB, the department approved rules that applied the existing classification for permanent telework assignments to non-permanent telework situations, and provided that payroll for workers who were not actually working could be excluded from companies’ premium determination, reducing premiums for those businesses not operating at full capacity.
“The Insurance Department was proactive in our response to how COVID-19 changed the way Pennsylvania works, and how workers’ compensation insurance was affected by this new way of doing business,” Altman said.
More than 325 insurance companies offer workers’ compensation insurance coverage in Pennsylvania. Altman noted the loss-cost filing premium savings for an individual employer will vary based on the employer’s risk classification, claims experience and other factors. Not all employers will see a decrease.