Insurance Commissioner Karen Weldin Stewart Announces
Substantial Decreases in Workers’ Compensation Rates

Expected Savings for Employers May Reach $20 million

DOVER, DE  – Insurance Commissioner Karen Weldin Stewart today approved the Delaware Compensation Rating Bureau’s workers’ compensation amended rate filing, resulting in overall average decreases of 9.7% in the residual market rate and 11.5% in the voluntary market loss cost.

The decreases are the result of cooperation among the DCRB, the Department of Insurance and Delaware’s Ratepayer Advocate, and are expected to save employers approximately $20 million in insurance costs this year.

“After several years of rate increases, I am pleased to announce a decrease in the premium most business owners will pay this year when purchasing workers’ compensation insurance,” said Commissioner Stewart. “As I said when the preliminary numbers were released in the fall, the decrease is the result of all the stakeholders working together to bring down Delaware’s high health care costs, which have been driving rates up over recent years.

“I want to thank the General Assembly for passing House Bill 373 last session, requiring that medical costs be reduced over the next three years.  I particularly want to thank my fellow members of the Governor’s Workers Compensation Oversight Panel, including Chair Rich Heffron, and Attorney General Matt Denn, past Chair of Workers’ Compensation Task Force, for doing the hard work that laid the foundation for HB 373.”

The effective date of the decrease is retroactive to December 1, 2014 for new and renewal business.

###

Learn how your business could save up to 19% on workers’ compensation insurance premiums by participating in the Delaware Workplace Safety Program. Learn more about the program by visiting http://delawareinsurance.gov/services/workplacesafetydiscount.shtml, or call 302-674-7377.

Delaware Department of Insurance: “Protecting Delawareans through regulation and
education while providing oversight of the insurance industry to best serve the public.”

Dover, DE-Delaware Insurance Commissioner Karen Weldin Stewart announces today that based on the agreement between the Delaware Department of Insurance, the Delaware Compensation Rating Bureau and the Ratepayer Advocate, she has approved the re-submission of the Delaware Compensation Rating Bureau (DCRB) workers’ compensation rate filing regarding the residual market rate and the voluntary market loss cost.

The annual filing was carefully reviewed and analyzed by the Delaware Insurance Department’s actuaries, as well as the Rate Payer Advocate’s actuary. The reports were posted on the Department’s website. The lower increases approved reflect a more appropriate balance in the cost of insurance premiums compared to the cost of the system. The Commissioner and the Rate Payer Advocate, along with their actuaries, concurred that the increases of 11.4% in residual market rates and 14% in voluntary market loss costs met the requirements in Delaware law that rates must not be inadequate, excessive, or unfairly discriminatory. The effective date of the increase is retroactive to December 1, 2013 for new and renewal business.

Commissioner Stewart stated “While three different actuaries have all concluded that an increase is indicated, I must weigh more than actuarial considerations in making my decision. The difficulties seen by Delaware employers as emphasized during the three public information sessions, the need for our economy to grow, and the rising costs faced by insurers must all be included in my final decision. This decision represents a savings of more than 45 million dollars to Delaware employers from the original submission. We encourage the DCRB and legislative leaders to continue to work toward a common goal of identifying and addressing the underlying cost drivers in Delaware’s workers’ compensation rates.” Stewart believes that continued momentum behind legislative reforms introduced in 2013 and those sought in 2014 to ensure that future rate requests are small will help to keep our economy strong and attract and retain businesses in Delaware. Stewart added “Unfortunately, a rate increase is necessary this year for worker’s compensation insurance in Delaware. My commitment to the consumer is unwavering; and I will continue to work with all parties to create further reform that we expect will result in a reduction in the overall cost drivers in the worker’s compensation system.”

For more information about the DCRB annual rate filings, visit the Delaware Department of Insurance website at www.delawareinsurance.gov.

Please see attached statement from the Rate Payer Advocate.
###

Delaware Department of Insurance: “Protecting Delawareans through regulation and education while providing oversight of the insurance industry to best serve the public.”

Insurance Commissioner Karen Weldin Stewart announces the retention of Fred Townsend, Esquire as “ratepayer advocate” for the upcoming workers’ compensation rate filing. Pursuant to recently passed legislation Mr. Townsend shall represent the interests of Delaware workers compensation rate-payers during the Insurance Commissioner’s consideration of the rate filing.

A member of the Delaware Bar since 1990, Mr. Townsend served as Delaware’s Deputy Insurance Commissioner from 1995-1999. Since returning to the private sector in 2000, his practice areas have included insurance regulation.

Commissioner Stewart stated that she “is confident that Mr. Townsend’s background, both in the Insurance Department and in the private sector makes him well suited to represent the ratepayers’ interests during this important step of analyzing the workers compensation rate filing”.

Anyone wishing to contact Mr. Townsend should do so via e-mail. Mr. Townsend will be available at ratepayeradvocate@delaware.gov.