Pure premium rate for Oregon workers to drop 3.2%

Oregon employers will pay less on average for workers’ compensation coverage in 2025.

Oregon Department of Consumer and Business Services decline in workers’ compensation rate, marking 12 years of average pure premium rate declines.

Employers would pay an average of 91 cents per $100 of wages for workers’ compensation next year, down from 93 cents in 2024, according to the DCBS proposal. The pure premium rate would decrease by an average of 3.2% under the proposal.

The cost reduction is due to an improvement in loss experience in Oregon, according to the National Board of Insurance Compensation.

Employers’ total cost of workers’ compensation insurance includes the pure premium and the insurer’s profit and expenses, plus premium assessment. Employers also pay at least half of the Workers’ Benefit Fund assessment, which is a rate of cents per hour worked.

The premium assessment, which is a percentage of the premium paid by employers, is added to the premium. It would remain at 9.8% in 2025, the same as in 2024, according to the DCBS proposal.

The drop in pure premium will take effect on January 1, 2025, but employers will see the changes when they renew their policies in 2025.

TOPICS
Oregon Workers Compensation