WARWICK – Beacon Mutual Insurance Co. today announced that the R.I. Department of Business Regulation has approved a reduction in rates by an average of 5.9 percent. The workers’ compensation insurer projects that policyholders will save an estimated $7.5 million in premiums with the new rate structure.
The new rates will be effective for policies issued or renewed by October 1, and it is the second consecutive year that Beacon has dropped its rates (last year the company instituted a 16-percent rate reduction that went into effect October 1).
“I am pleased we have been able to provide a rate reduction to our policyholders for the second year in a row,” said Beacon President and CEO James V. Rosati in a statement. “I believe these rate reductions have been possible due to the efforts of the Beacon staff working closely with policyholders to reduce the incidence and severity of claims.
“DBR’s approval of the rate reduction will allow Beacon to reduce rates while remaining a financially sound institution.”
The company is still coming out from under a cloud stemming from allegations and investigations over alleged preferential treatment and other improprieties, which resulted in an internal investigation as well as a DBR report. Former President and CEO Joseph A. Solomon was fired more than a year ago, not long after Chairman of the Board Sheldon S. Sollosy was forced out.
The upheaval continued, with Gov. Donald L. Carcieri trying to force out two other board members (they eventually served out their terms but were not reappointed to the board). Rosati is a former bank executive and long-time Carcieri ally who was voted in as Beacon’s new chief following a national search for a successor to Solomon.
The Beacon Mutual Insurance Co. is the largest writer of workers’ compensation insurance, as well as the largest writer of commercial insurance (property casualty), in Rhode Island. For more information, go to www.beaconmutual.com.
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