Pinnacol Assurance’s Board of Directors has approved a decrease in workers’ compensation rates that will average -3.2 percent for the insurer’s 55,000-plus Colorado policyholders. This decrease surpasses the Colorado Division of Insurance’s recommendation of a -2.4 percent change, and will become effective Jan. 1, 2017. The board also announced its intent to issue a general divided of approximately $50 million to policyholders in 2017.
“Being a good steward of our policyholders’ premiums includes giving back when we’ve been successful,” said Phil Kalin, Pinnacol’s President and CEO. “Putting money back in 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.”
We calculate our rates to be competitive for our customers, as well as sufficient to ensure our ability to pay claims that may last for decades. The 2017 decrease is a result of steady improvement in our financial performance, favorable claims trends and a strong Colorado economy.
The general dividend is a portion of Pinnacol’s capital paid to policyholders who earn it through their commitment to workplace safety and controlling claims costs, and as a result of favorable market conditions. We’re happy to report that, barring a significant and unexpected financial loss in the fourth quarter of 2016, the dividend will amount to approximately $50 million, significantly more than the $30 million distributed last year. The dividend will be distributed by the end of April 2017, with the exact amount to be set in February 2017.