Delaware News

Navarro Announces Eighth Consecutive Workers’ Comp Rate Decrease

Captive | Captive Insurance | Insurance Commissioner | Date Posted: Monday, October 14, 2024


Official Seal of the Insurance Commissioner of Delaware

Additionally, Workplace Safety Program eligibility changes will help more companies stay safe and save money

Insurance Commissioner Trinidad Navarro announced today that workers’ compensation insurance rates will decrease for the eighth year in a row, effective December 1. The voluntary market is expected to decrease average loss costs by 8.4%, and the residual market will see an average rate reduction of 9.21%. The announcement follows confirmation of the Delaware Compensation Rating Bureau (DCRB) filing by independent actuaries, and a public hearing with DCRB and the State’s Ratepayer Advocate. Actual savings will vary by policy.

“Delaware’s businesses used to pay some of the highest workers’ compensation premiums in the country, but I am proud to say that from the start of my administration to today, we have been able to approve rate decreases every single year,” said Commissioner Navarro. “In fact, these consecutive and significant reductions prompted us to work with partners to amend the premium threshold at which companies can receive additional premium discounts through participation in our Workplace Safety Program.”

This year’s decrease in worker’s compensation insurance rates continues the reversal of voluntary and residual market trends. With the residual market expected to see a greater rate decrease, it shows that companies who previously could only obtain coverage in this ‘last resort’ market, due to cost, high risk, or claims history, can now obtain traditional voluntary market coverage. This is the third year of this trend, which indicates substantial improvement in coverage affordability and employee safety.

Workers’ compensation insurance provides coverage when an employee is hurt on the job and can provide medical coverage as well as payments for lost wages if a person is unable to work due to their injury. Lower premiums don’t change the amount of compensation an injured employee receives.

These lower rates are just one component of several department efforts to help businesses. As of year-end 2023, nearly 1,000 employers are saving even more on their premiums by participating in the department’s Workplace Safety Program, saving approximately $5.6M last year. Eligible businesses can earn up to a 19% discount on their insurance by successfully undergoing annual safety inspections and complying with recommendations. When Senate Bill 306 goes into effect early next year, alongside any relevant regulations, eligibility changes will result in the Program becoming available to an estimated 2,120 additional employers.

Businesses eligible for the Workplace Safety Program are notified each year seven months prior to their renewal date. Organizations interested in participating can access questionnaires online and contact safety@delaware.gov to begin the process. The department has updated the Inspection Fee Schedule for program participants, as indicated on the questionnaire. Workplace Safety Program inspectors are independent safety professionals contracted by the department, not state employees or OSHA. Only benefits can be gained by participating; failure to qualify cannot be the basis for premium increases or sanctions imposed by other safety officials.

View the DCRB website

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Navarro Announces Eighth Consecutive Workers’ Comp Rate Decrease

Captive | Captive Insurance | Insurance Commissioner | Date Posted: Monday, October 14, 2024


Official Seal of the Insurance Commissioner of Delaware

Additionally, Workplace Safety Program eligibility changes will help more companies stay safe and save money

Insurance Commissioner Trinidad Navarro announced today that workers’ compensation insurance rates will decrease for the eighth year in a row, effective December 1. The voluntary market is expected to decrease average loss costs by 8.4%, and the residual market will see an average rate reduction of 9.21%. The announcement follows confirmation of the Delaware Compensation Rating Bureau (DCRB) filing by independent actuaries, and a public hearing with DCRB and the State’s Ratepayer Advocate. Actual savings will vary by policy.

“Delaware’s businesses used to pay some of the highest workers’ compensation premiums in the country, but I am proud to say that from the start of my administration to today, we have been able to approve rate decreases every single year,” said Commissioner Navarro. “In fact, these consecutive and significant reductions prompted us to work with partners to amend the premium threshold at which companies can receive additional premium discounts through participation in our Workplace Safety Program.”

This year’s decrease in worker’s compensation insurance rates continues the reversal of voluntary and residual market trends. With the residual market expected to see a greater rate decrease, it shows that companies who previously could only obtain coverage in this ‘last resort’ market, due to cost, high risk, or claims history, can now obtain traditional voluntary market coverage. This is the third year of this trend, which indicates substantial improvement in coverage affordability and employee safety.

Workers’ compensation insurance provides coverage when an employee is hurt on the job and can provide medical coverage as well as payments for lost wages if a person is unable to work due to their injury. Lower premiums don’t change the amount of compensation an injured employee receives.

These lower rates are just one component of several department efforts to help businesses. As of year-end 2023, nearly 1,000 employers are saving even more on their premiums by participating in the department’s Workplace Safety Program, saving approximately $5.6M last year. Eligible businesses can earn up to a 19% discount on their insurance by successfully undergoing annual safety inspections and complying with recommendations. When Senate Bill 306 goes into effect early next year, alongside any relevant regulations, eligibility changes will result in the Program becoming available to an estimated 2,120 additional employers.

Businesses eligible for the Workplace Safety Program are notified each year seven months prior to their renewal date. Organizations interested in participating can access questionnaires online and contact safety@delaware.gov to begin the process. The department has updated the Inspection Fee Schedule for program participants, as indicated on the questionnaire. Workplace Safety Program inspectors are independent safety professionals contracted by the department, not state employees or OSHA. Only benefits can be gained by participating; failure to qualify cannot be the basis for premium increases or sanctions imposed by other safety officials.

View the DCRB website

image_printPrint

Related Topics:  , , , , , , , ,


Graphic that represents delaware news on a mobile phone

Keep up to date by receiving a daily digest email, around noon, of current news release posts from state agencies on news.delaware.gov.

Here you can subscribe to future news updates.