Starting December 1, employers in Delaware will see a drop in their workers’ compensation insurance rates for the ninth year running. The average loss costs in the voluntary private market are set to fall by 11.6%, while rates for the high-risk residual market will go down by 9.08%.
Insurance Commissioner Trinidad Navarro shared that over the past few years, many businesses have moved from the higher-risk residual market into the voluntary market. This shift is helping to lower costs for both groups. The rate changes were reviewed and approved after input from independent actuaries, the Delaware Compensation Rating Bureau, and the State’s Ratepayer Advocate.
This isn’t a sudden change. The state has been steadily cutting rates for several years. For example, in December 2024, rates dropped by 8.4% in the voluntary market and 9.21% in the residual market. The previous years saw similar decreases: 7.24% and 11.18% in December 2023; almost 11% and over 16% in December 2022; and big cuts of around 20% for both markets in December 2021.
These declining rates are good news for Delaware employers. Paying less for workers’ compensation insurance means lower costs for businesses, especially for those previously seen as high risk. However, the exact savings will depend on each specific policy.
With this continued trend, Delaware is becoming more affordable for businesses when it comes to workers’ compensation coverage. It also suggests that the insurance market in the state is stabilizing and spreading risk more evenly among employers.