CopperPoint, AF Group raise workers' comp rates in Q4'20

A rate hike obtained by Pacific Compensation Insurance Co., a subsidiary of CopperPoint Mutual Insurance Holding Co., may be the most-impactful increase approved by any state regulator for the workers' compensation business during the fourth quarter of 2020.

Overall, CopperPoint secured four rate-increase approvals across four states, which could boost calculated premiums by $6.7 million. About 45%, or $3 million, of the estimated premium increase is expected to come from the three rate hikes requested by Alaska National Insurance Co.

Regulators also signed off on four rate-cut requests for CopperPoint in Utah and California, which could lower premiums by a little more than $120,000.

AF Group received 32 rate-hike approvals across nine states that could lead to a collective $14.6 million increase in premiums. That projected increase stands to be somewhat offset by the rate reductions approved in seven states that may lower premiums by an estimated $10.6 million. The most notable single rate cut secured by the group was requested by Accident Fund General Insurance Co., which may decrease premiums by $2.7 million.

Oregon's state regulator approved SAIF Corp.'s request for a single rate cut that may have been the most notable decrease nationwide during the fourth quarter of 2020. A 3.6% rate reduction could see calculated written premiums decrease by nearly $11 million.

This S&P Global Market Intelligence analysis covers 3,418 workers' comp rate filings approved during the quarter that ended Dec. 31, 2020. Out of these, 720 resulted in premium increases, 1,902 led to rate reductions and the rest had no effect on calculated premiums.