WARWICK – The Beacon Mutual Insurance Co. today announced plans to pare workers’ compensation premiums by an average of 7.2 percent, in its third reduction in as many years.
The new rates – already approved by the R.I. Department of Business Regulation – will apply to policies issued or renewed starting Oct. 1.
“Reductions in claims frequency and the efficient management of claim costs continue to be the drivers” for the company’s rate cuts, said President and CEO James V. Rosati, adding: “We are pleased to be playing a major role in achieving these results, through our loss-prevention and claims-management programs.”
In April, the once-troubled insurer distributed $5.6 million to about 9,400 policyholders, completing the payout required by its 2007 settlement with the R.I. Department of Business Regulation. (READ MORE)
Beacon today estimated the new rate plan will save policyholders an estimated $10 million per year. Combined with the rate cuts of the past two years – which have generated policyholder savings of about $17 million per year – it will yield total annual customer savings of about $27 million, the company said.
“In these tough economic times, where Rhode Island businesses are experiencing dramatic increases in fuel costs and other areas of operation, we are particularly pleased to announce our third rate reduction in as many years,” Rosati said.
“Adoption of the rate reduction will allow Beacon to further reduce rates for our customers while remaining a financially sound institution,” he added. “Beacon will continue to be a stabilizing force in the Rhode Island workers’ compensation market.”
The Beacon Mutual Insurance Co. – established by the R.I. General Assembly in 1990, as the State Compensation Insurance Fund – is the largest writer of workers’ compensation insurance and commercial property casualty insurance in Rhode Island. Additional information is available at www.beaconmutual.com.
