Beacon Mutual Cuts Workers’ Compensation Rates in R.I. 7.2%

Beacon Mutual Insurance Co., Rhode Island’s largest workers’ compensation carrier, reported that it will implement a 7.2 percent average decrease in rates that has been approved by the Department of Business Regulation.

The average rate reduction of 7.2 percent will result in approximately $10 million in premium savings for Beacon policyholders, the company said. The new rates will be effective for policies issued or renewed effective Oct. 1, 2008.

This will be the third consecutive policy year Beacon has adopted a rate reduction. The first two rate reductions created approximately $17 million in savings. With the addition of this year’s rate reduction, Beacon policyholders will ultimately realize approximately $27 million in premium savings.

James V. Rosati, Beacon’s president and chief executive officer, credited reductions in claims frequency and the efficient management of claim costs for the savings.