View this article online: https://www.insurancejournal.com/news/west/2016/11/21/432978.htm
Pinnacol Assurance’s board of directors has approved a 2017 decrease in workers’ compensation rates that will average 3.2 percent for the insurer’s Colorado policyholders.
The 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 roughly $50 million to policyholders in 2017.
Pinnacol calculates its rates to be competitive for its customers, as well as sufficient to ensure the company’s ability to pay claims that may last for decades. The 2017 decrease is a result of steady improvement in Pinnacol’s financial performance, favorable claims trends and a strong Colorado economy, according to the company.
The general dividend is a portion of Pinnacol’s surplus shared with policyholders and will be distributed by the end of April 2017, with the exact amount to be set in February 2017.
This will mark the second consecutive year Pinnacol has issued a dividend. Since 2005 Pinnacol has returned more than $506 million in dividends to policyholders.