Pinnacol also anticipates issuing a general dividend in 2021 for the sixth consecutive year.
The Board of Directors of Pinnacol Assurance has approved a plan that will lower the rates by an average of 6% in 2021. While this rate change will vary based on each businesses’ unique characteristics, overall, the decrease equates to nearly $30 million in lower premium costs.
The decrease will take effect on Jan. 1, 2021, and will be the sixth consecutive year Pinnacol has decreased rates for its customers.
“We understand that to many of our policyholders, even a small decrease in rates can make a difference during historically challenging economic conditions,” said Phil Kalin, president, and CEO of Pinnacol Assurance. “It’s a testament to Pinnacol's unwavering commitment to Colorado's businesses and their employees.”
Kalin continued, “The adequacy of our rates is crucial to Pinnacol’s financial strength, our ability to compete, and the stability of Colorado’s workers’ compensation marketplace.” Pinnacol’s rate decrease reflects the company’s evaluation of marketplace conditions and external economic factors, including COVID-19 impacts.
Although COVID-19-related disruptions continue to create a challenging economic environment, Pinnacol anticipates issuing a general dividend to policyholders in 2021. The board will make a final decision about the general dividend in February.