Pennsylvania Insurance Department Approves Workers' Compensation Cuts

The Pennsylvania Insurance Department has approved a loss-cost filing that will result in an 8.67% decrease in expected claims costs, which is expected to lower workers' compensation insurance premiums for businesses in Pennsylvania. This move aims to foster a competitive workers’ compensation market that protects both workers and companies by ensuring necessary coverage is affordable. The filing, made by the Pennsylvania Compensation Rating Bureau, comes into effect on April 1, impacting new and renewed policies.

Insurance Commissioner Michael Humphreys emphasized the importance of this adjustment in maintaining a viable market that benefits both employers and employees. The decision not only aims to reduce costs for businesses but also reassures workers about their coverage in case of workplace accidents. The collaborative efforts between the Insurance Department and the Department of Labor & Industry aim to enhance workplace safety and encourage businesses to invest in their operations.

With approximately 370 insurance companies offering coverage in Pennsylvania, the financial impact of this reduction will vary based on individual employer classifications, claims histories, and other criteria. Employers can also save on premiums by establishing Certified Workplace Safety Committees, which can further benefit their operations by allowing them to reinvest savings into their businesses.