Workers’ comp insurance rates to drop again

DOVER — Workers’ compensation insurance rates will decrease for the fourth year in a row, effective Dec. 1, Delaware Insurance Commissioner Trinidad Navarro announced Tuesday.
The voluntary market is seeing yet another double-digit decrease in loss costs, with an average 11.56% reduction, and residual market rates will go down an average of 8.8%, according to the commissioner.
“For four consecutive years, we have been able to decrease workers’ compensation costs for businesses of all sizes,” Mr. Navarro said.
“This year’s reduction will help decrease business expenses, as we continue to experience the economic effects of the COVID-19 pandemic. These lower costs can attract new companies to our state and increase employment opportunities, as many organizations look to move out of major metropolitan areas,” he said.
The Delaware Compensation Rating Bureau approved the lower rates after discussion with the Department of Insurance and the state’s ratepayer advocate. The approval process includes a review by actuaries for the parties, as well as a public hearing. The actual savings may differ and will vary by policy, the commissioner said.
Last year’s decreases saved businesses more than $4 million in premiums, the commissioner said.