Denver, CO – Pinnacol Assurance’s Board of Directors has approved a 2016 decrease in workers’ compensation rates that will average -3.6 percent for the insurer’s more than 56,000 Colorado policyholders. This decrease surpasses the Colorado Division of Insurance’s recommendation of a -1.9 percent change, and will become effective Jan. 1, 2016. In addition to the rate decrease, Pinnacol’s Board announced its intent to issue a general divided to policyholders in 2016.
“Pinnacol’s ability to decrease rates is a direct result of our efforts to improve our financial performance, fewer claims, and a strong Colorado economy,” said Phil Kalin, Pinnacol’s President and CEO. “We’re committed to our policyholders’ success, and that means providing them with competitive rates while maintaining premiums sufficient to ensure long-term stability.”
The general dividend is a portion of Pinnacol’s surplus shared with policyholders. Barring a significant and unexpected financial loss in the fourth quarter of 2015, the dividend will amount to at least $30 million and will be distributed by the end of April 2016.
While Pinnacol has not issued a dividend or decreased rates since the Great Recession, it has a strong history of returning money to policyholders. Since 2008, Pinnacol’s rates have decreased a cumulative 11.6 percent, and over the last ten years, Pinnacol has returned more than $472 million in dividends to policyholders.