Today’s issue of WorkCompRecap features a couple of pieces of returns news with Minnesota’s Workers’ Compensation Reinsurance Association (WCRA) recent announcement of a $600 million surplus distribution to its members and policyholders.
The WCRA, which provides reinsurance for all insurers and self-insured employers licensed to provide workers’ comp in Minnesota, noted that the distribution was made possible by excellent investment returns and reductions in loss reserve liabilities from favorable inflation rates and declining claims frequency. Recent Minnesota legislation recommended by the Workers’ Compensation Advisory Council also provided cost containment measures to stabilize and reduce future workers’ comp medical cost trends. Approximately $383 million will go to insurers, $182 million will be distributed to self-insurers, and $35 million will go to policyholders.