Amidst news of insurance rate hikes from throughout the country, the Pennsylvania Department of Insurance offers a change of pace. State regulators have announced the approval of a 5.7% decrease in workers’ compensation costs. The rate reduction is estimated to save the state’s employers approximately $160 million. The 5.7% decrease is a reflection of average reductions throughout the state and will not affect all consumers in Pennsylvania. Some will see higher rates while others see no changes at all, according to regulators.
Insurance Commissioner Mike Consedine believes that the rate reduction is a sign that the state’s workers’ compensation insurance system is becoming more adaptive to the economic climate. Regulators claim that the rate reduction is possible thanks to employers making an effort to make their workplaces safer. This is largely due to the incentives provided by the Department of Labor & Industry, which claims that more than 1.3 million Pennsylvania residents now work at businesses with certified safety committees.
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The rate reduction may be a relief for some workers in the state, but others will see no benefit from the initiative. Despite this, businesses will be able to be more flexible with their budgets and may look for ways to offset the costs that their workers face. Regulators are hopeful that further reductions can be made in the future as employers continue to increase their safety standards.
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