Delaware Insurance Commissioner Trinidad Navarro

PHOTO COURTESY OF delaware.gov.

By Joseph Edelen

DOVER — Workers’ compensation insurance rates will decrease once again beginning Dec. 1, Delaware Insurance Commissioner Trinidad Navarro announced Monday.

For the eighth consecutive year, voluntary workers’ compensation rates are expected to decline, with average loss costs projected to drop by 8.4% in the voluntary market, according to the office.

Further, the residual market is anticipated to see an average rate decrease of over 9.2%.

“Delaware’s businesses used to pay some of the highest workers’ compensation premiums in the country, but I am proud to say that from the start of my administration to today, we have been able to approve rate decreases every single year,” Commissioner Navarro.

“In fact, these consecutive and significant reductions prompted us to work with partners to amend the premium threshold at which companies can receive additional premium discounts through participation in our Workplace Safety Program.”

Workers’ compensation insurance can protect employees hurt on the job by covering medical expenses and providing wages for individuals unable to work due to their injuries.

The announcement comes after the Delaware Compensation Rating Bureau filing by “independent actuaries,” according to the insurance office, as well as a public hearing with bureau and Delaware’s ratepayer advocate. Actual savings will vary by policy, the office said.

At the end of the 2023 calendar year, nearly 1,000 Delaware employers were saving more on their workers’ compensation premiums by participating in the Department of Insurance’ Work-place Safety Program. The office announced that these employers saved approximately $5.6 million by participating in the program in 2023.

Further efforts by the Department of Insurance include offering employers annual safety inspections, where, if the businesses comply with recommendations, can earn up to a 19% dis-count on their insurance plans.

Following the enactment of Senate Bill 306 in July, which will go into effect Jan. 17, 2025, eligibility changes in the Workplace Safety Program will expand the plan to an estimated 2,120 additional employers, according to the Department of Insurance.

The drop in worker’s compensation insurance rates in 2024 marks a continued shift in market trends. The residual market is expected to see larger rate decreases, which will allow employers to access voluntary coverage.

This is the third year of this trend, which “indicates substantial improvement in coverage affordability and employee safety,” according to the department.