Pinnacol Assurance, Colorado’s largest workers-compensation insurer, will cut premiums by an average of 3.2 percent in 2017 and likely will issue a $50 million dividend for policy holders, the company announced Monday.
The rate decrease by the state-chartered insurer is larger than the Colorado Division of Insurance’s recommendation for a 2.4 percent cut in premiums. It comes as a result of favorable claims trends and an improvement in Pinnacol’s financial performance.
“Being a good steward of our policy holders’ premiums includes giving back when we’ve been successful,” Pinnacol president/CEO Phil Kalin said. “Putting money back in Colorado employers’ pockets through a rate decrease and general dividend is one way for us to help them succeed and to keep the state’s economy strong.”
The dividend is contingent on there not being a “significant and unexpected financial loss in the fourth quarter of 2016,” company officials said. It would be the second straight year that Pinnacol issues a dividend to its roughly 55,000 member companies — representing some 60 percent of all Colorado businesses — and would be $30 million more than it distributed last year.
Read more at the Denver Business Journal: http://bit.ly/2flLsGC
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