|2015-12-08 by Kathy Stevens|
|Pinnacol Decreases Workers’ Compensation Rates for 2016|
Pinnacol Decreases Workers’ Compensation Rates for 2016
The insurer also intends to issue a general dividend to policyholders in 2016
Pinnacol Assurance’s Board of Directors has approved a 2016 decrease in workers’ compensation rates that will average -3.6 percent for the insurer’s more than 56,000 Colorado policyholders. This decrease surpasses the Colorado Division of Insurance’s recommendation of a -1.9 percent change, and will become effective Jan. 1, 2016. In addition to the rate decrease, Pinnacol’s Board announced its intent to issue a general dividend to policyholders in 2016.
“Pinnacol’s ability to decrease rates is a direct result of our efforts to improve our financial performance, fewer claims, and a strong Colorado economy,” said Phil Kalin, Pinnacol’s President and CEO. “We’re committed to our policyholders’ success, and that means providing them with competitive rates while maintaining premiums sufficient to ensure long-term stability.”
The general dividend is a portion of Pinnacol’s surplus shared with policyholders. Barring a significant and unexpected financial loss in the fourth quarter of 2015, the dividend will amount to at least $30 million and will be distributed by the end of April 2016.
While Pinnacol has not issued a dividend or decreased rates since the Great Recession, it has a strong history of returning money to policyholders. Since 2008, Pinnacol’s rates have decreased a cumulative 11.6 percent, and over the last ten years, Pinnacol has returned more than $472 million in dividends to policyholders.
Pinnacol Assurance is Colorado’s leading provider of workers’ compensation insurance. Pinnacol provides comprehensive, competitively priced coverage; immediate attention to claims; a highly qualified network of medical providers; and proactive safety programs to over 56,000 Colorado businesses. Annually, Pinnacol supports $364 million of Colorado’s economic activity, spends over 35,000 hours keeping Colorado worksites safe and provides compassionate care to over 40,000 Coloradans who were injured on the job. For more information, visit www.pinnacol.com.