Beginning Jan. 1, 2006, the standard premium for workers’ compensation in Colorado will decrease an average of 1 percent, as a result of an order signed by Colorado Insurance Commissioner David Rivera.
Although individual employer workers’ comp premiums are affected by many other rating factors, many Colorado employers will see a decrease in their premiums as a result of this action. This decrease follows last year’s average decrease of 5.4 percent.
“The continued decrease in Colorado’s workers’ compensation costs is due in no small degree to Colorado employers, who have worked hard to create and maintain safe working conditions,” said Rivera. “This change also underscores the stability of the Colorado market.”
On Aug. 1, 2005, the National Council on Compensation Insurance (NCCI) submitted its annual workers’ comp loss cost and rating values filing with a proposed average premium increase of 5.1 percent. As is permitted by law, and as is customary, the Division of Insurance contracted with an independent actuary to review the filing to determine the reasonableness of the proposed change.
The Division’s independent actuary concluded that the average premium for workers’ comp should decrease by 5.1 percent. At a Sept. 13, 2005 public hearing the NCCI and the Division’s consulting actuary explained and defended their differing conclusions, and the public was given an opportunity to provide testimony.
The Commissioner’s final decision to order a 1 percent decrease was based on careful consideration of all evidence and testimony, and after a careful weighing of the merits of each argument.
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