By Craig Anderson

DOVER - Insurance Commissioner Trinidad Navarro announced on Monday that workers’ compensation insurance rates will decrease for the sixth year in a row, effective Dec. 1, 2022.

Both the voluntary market and the residual market will see rate decreases in the double digits, according to a news release.

“Lowering worker’s compensations costs time and time again helps our local businesses, who have faced several years of uncertainty and economic difficulty due to the pandemic,” Mr. Navarro said.

“It also helps us to attract new companies and jobs to our state. While costs continue to decrease, companies are keeping their eye on the ball by reducing risk through programs like our Workplace Safety initiative.”

This year’s decrease in worker’s compensation insurance rates is expected to be coupled with the reversal of voluntary and residual market trends – the residual market is expected to see a greater rate decrease.

Residual insurers provide ‘last resort’ coverage for companies unable to obtain or afford coverage in the traditional market. Generally, rates in the residual market do not decrease more than the voluntary market, as the clientele tends to be businesses with higher risk or claims history.

The reduction seen in the residual market is an indicator that these policies are being used less frequently, as companies can better afford the traditional, voluntary market.

Workers’ compensation insurance provides coverage when an employee is hurt on the job and can provide medical coverage as well as payments for lost wages if a person is unable to work due to their injury. Lower premiums don’t change the amount of compensation an injured employee receives.

Final rates are expected to be announced in early November, following a review of the Delaware Compensation Rating Bureau filing by independent actuaries, and a public hearing with the bureau and the State’s Ratepayer Advocate.

Actual savings will vary by policy.