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For more information: contact Merle Scheiber, Director, Division of Insurance, 605-773-3563
(PIERRE, SD) – Merle Scheiber, Director of the South Dakota Division of Insurance, announced today that due to more expensive claims, employers in the state will see a moderate increase in workers’ compensation rates effective July 1, 2006.
According to Scheiber, workers’ compensation rates have been relatively stable in recent years but have increased slightly this year due to claims becoming more expensive on average. Overall the number of claims has remained relatively constant after a number of years of declining frequency. Scheiber says there are steps employers can take to help control their costs.
“I encourage employers to take advantage of the safety reviews available to them through their insurance carrier as a way of controlling their workers’ compensation costs as both the frequency and severity of claims affect the future premiums that the employer will need to pay,” Scheiber said.
The overall increase for voluntary loss costs, the basis on which individual insurance companies calculate their rates, will go up 4.3%. Those employers in the assigned risk market will have their rates increased by 2% this year.
Anyone with questions regarding workers’ compensation rating is encouraged to contact the South Dakota Division of Insurance at 605.773.3563. Additional information is also available for both employers and those in the workers’ compensation industry on the division’s website at www.state.sd.us/drr2/reg/insurance.
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