Harrisburg, PA – The Pennsylvania Insurance Department (PID) and the Department of Labor & Industry (L&I) today announced that PID approved a loss-cost filing that includes an 8.67% reduction in the expected costs of paying claims, known as “loss costs.” Because loss costs help determine workers' compensation insurance rates paid by businesses, this reduction will likely lead to lower premiums for many Pennsylvania businesses.
“A competitive workers’ compensation market is beneficial to both workers and businesses,” said Pennsylvania Insurance Commissioner Michael Humphreys. “This ensures Pennsylvania businesses have the tools they need to provide the necessary coverage workers rely on in the event of a work-related accident, and it also reassures hard-working Pennsylvanians that they’re protected when the unexpected happens. Our Department will continue to work toward continued reductions in years to come.”
This loss-cost revision was filed by the Pennsylvania Compensation Rating Bureau (PCRB), an independent bureau that makes filings to PID 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.
Approximately 370 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.
Thousands of Pennsylvania employers have saved millions in insurance premiums by developing a Certified Workplace Safety Committee. Companies that save on workers’ compensation insurance premiums can use that money to buy new equipment, hire more workers, and expand their businesses. For more information on this program visit the L&I Health & Safety Division webpage.
“Today’s reduction in workers' compensation loss costs is a positive step forward in supporting both Pennsylvania’s workforce and its businesses,” said L&I Secretary Nancy A. Walker. “By lowering premiums, we’re ensuring that employers can continue to afford the critical coverage their employees rely on in the event of a workplace injury, while also providing workers with the protection they deserve. This collaborative effort underscores our commitment to creating a balanced and sustainable workers' compensation system that benefits all Pennsylvanians. We remain dedicated to enhancing workplace safety and providing the resources employers need to keep their employees safe.”
This year’s loss cost filing goes into effect April 1. New or renewed policies issued on or after April 1 will be subject to the new loss costs.
More information on Pennsylvania insurance products can be found on the PID website.
Additional information on Bureau of Workers' Compensation, Pennsylvania Training for Health and Safety (PATHS) free workplace safety and Health training is available on the L&I website.
Consumers with questions about their insurance or wishing to file a complaint can contact PID's Consumer Services Bureau online or by calling 1-877 -881-6388.
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MEDIA CONTACT:
Adrian Sipes, ra-in-press@pa.gov
Danielle L. Woods, dlipress@pa.gov
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