Harrisburg, PA – Pennsylvania Acting Insurance Commissioner Michael Humphreys today announced approval of a loss-cost filing, including a 6.25 percent reduction in loss costs. Loss-costs are a component in determining workers' comp insurance rates paid by businesses, and this reduction should lead to lower premiums for many Pennsylvania businesses.
This loss-cost revision was filed by the Pennsylvania Compensation Rating Bureau (PCRB), an independent bureau that makes filings to the Insurance Department on behalf of companies that write workers' compensation insurance in Pennsylvania. Workers' compensation insurance covers the cost of medical care and rehabilitation for injured workers, lost wages and death benefits for the dependents of those killed in work-related accidents.
"This year's loss-cost decrease will help to further Pennsylvania businesses' recovery in the wake of the COVID-19 pandemic, allowing for more spending on other priorities," Humphreys said. "This reduction is a continuation of several years of loss-cost decreases, and under Gov. Wolf's leadership, Pennsylvania continues to have a vibrant workers' compensation insurance market, ensuring employers are able to find cost-efficient workers' compensation coverage."
Approximately 350 insurance companies offer workers' compensation insurance coverage in Pennsylvania. The loss-cost filing premium savings for an individual employer will vary based on the employer's risk classification, claims experience and other factors. Humphreys noted that not all employers will see a decrease in premiums from this reduction.
Department of Labor & Industry Secretary Jennifer Berrier explained that six straight years of loss-cost reductions under the Wolf Administration have benefitted Pennsylvania businesses and workers through increased safety efforts and injury reductions. Berrier said certified workplace safety committees, overseen by her department, are key for both cost and increased safety awareness.
"Workplace safety committees bring together employers and employees for the shared goal of workplace health and safety of all," Berrier said. "These committees are so effective at reducing costs that an additional five percent discount on workers' comp insurance premiums is granted to the companies that certify their committees."
More than 12,900 state-certified workplace safety committees have been established since March 1994, protecting more than 1.6 million workers. Additionally, employers with certified workplace safety committees have saved more than $847.4 million in workers' compensation premiums. These savings in insurance costs are due solely to the five percent premium discount provided to businesses that have these committees.
Berrier added her department's Bureau of Workers' Compensation Health & Safety Division provides employers with the most up-to-date and relevant safety training and information possible for employees through the department's Pennsylvania Training for Health and Safety (PATHS) initiative. Employers should contact their insurance company or agent for more information about how their workers' compensation premiums could be affected.
For more information, employers are also encouraged to attend the 21st Annual Workers' Compensation Conference to be held June 6 and 7 in Hershey.
More information on Pennsylvania insurance products is available at www.insurance.pa.gov. More information on Bureau of Workers' Compensation, Pennsylvania Training for Health and Safety (PATHS) free workplace safety and Health training is available at www.dli.pa.gov/paths.