• This analysis by S&P Global Market Intelligence is limited to publicly available rate filings submitted to state insurance regulators.
• Rate filing information is sourced from the System for Electronic Rate and Form Filing documents.
• States employ a variety of rate regulation mechanisms such as prior approval, modified prior approval, file and use, and use and file. The form filing laws govern the type of policy form regulation used by the state and may not require explicit approval by the regulator prior to using the new rate.
• The analysis is based on when a rate filing is "disposed" by the state regulator and does not take into account when the new rate became effective for new and renewal business. In some instances, the new rate has been in effect prior to the particular month the filing has been "disposed" by the regulator.

Insurance companies continued to decrease workers' compensation rates in the first quarter of 2022.

Regulators in South Carolina approved the largest number of rate cuts during the quarter at 286, followed by Georgia at 206. Those rate cuts could lead to a calculated written premium reduction of $52.7 million and $67 million, respectively, for the industry.

The calculated decrease in Georgia is the largest for any single state for the quarter. The state was followed by Colorado, which could see premiums written fall by $53.3 million from 16 rate reductions disposed during the period.

Pinnacol Assurance logs largest premium decreases

Pinnacol Assurance, the largest workers' compensation insurer in Colorado with a market share of almost 54%, could see the largest cumulative negative premium impact from rate reductions approved in the first quarter.

The company stands to see its premiums fall by $51.8 million from seven rate cuts approved in Colorado. Five of those reductions were among the 10 most notable decreases approved during the quarter.

Rate hikes in Hawaii

At the other end of the spectrum, Hawaii could see the largest calculated increase in written premiums at $14.9 million. More than 90% of the projected increase is expected to come from six rate hikes that are included in the top 10 most impactful rate increases for the quarter.

The most impactful single rate increase approved in the first quarter looks to be the 11.9% rate hike requested by Hawaii Employers' Mutual Insurance Co. Inc. as it could boost the company's written premium by nearly $9.3 million. That rate increase will affect roughly 6,600 policyholders in Hawaii.