More policies move to out of the Legacy LCM and more commission paid
At the end of 2019, Pinnacol introduced a new structure to make our pricing more competitive -- especially for small businesses. We told our agent partners our new structure would mean fewer new policies would fall into the Legacy LCM (loss cost multiplier), and more policies would move into the Preferred and Superior LCMs.
Now we’re officially one year into using this new pricing structure, we’re excited to share what we’ve learned. Here are our 2020 results for renewing customers (these numbers don’t include new business):
- The percent of policies in the Legacy LCM went from 25% to 4%.
- Premium went from 11% to 2%.
- Pinnacol paid an additional $2.8M in agent commission.
- More than 8,600 customers received better pricing as a result of our new structure.
Thank you for thinking of us when you place workers’ comp business. As always, we appreciate your support, and we look forward to working together in the year ahead to provide exceptional workers’ comp coverage to Colorado businesses.