Insurer also announces intent to issue a dividend to policyholders
DENVER, Nov. 10, 2021 — The board of directors of Pinnacol Assurance, Colorado’s largest workers’ compensation insurer, has approved a plan that will lower rates for the carrier’s 53,000-plus policyholders in Colorado by an average of 11%* in 2022. The decrease will become effective Jan. 1, 2022. Pinnacol has decreased rates for seven consecutive years for a cumulative decrease of 40%. The 2022 rate decrease will be nearly double the previous year’s decrease.
In addition to approving a rate decrease for 2022, Pinnacol’s board of directors announced its intent to issue a general dividend of approximately $40 million to customers in 2022. The final amount of the general dividend, which is based on full-year 2021 financial results, will be set in February 2022 and issued no later than April. Pinnacol has issued $370 million in general dividends since 2016. Pinnacol’s rate decrease and dividend strategy reflect the company’s evaluation of marketplace conditions and external economic factors.
“Pinnacol is proud to be offering its largest rate decrease in more than a decade. We’re in a position to do this — and to have offered sizable general dividends to our customers for the past seven years — as a result of our financial strength,” said Phil Kalin, president and CEO of Pinnacol Assurance.
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. We continue to be pleased to offer the lowest possible rates to our customers while maintaining our financial viability.”
*The exact percentage of the decrease (or increase, if applicable) for individual customers is based on their policy’s unique attributes, including classification code, payroll and safety experience.
# # #