Evaluating the Impact of Pennsylvania’s Certified Safety Committee Program:
The Pennsylvania Certified Safety Committee Program (PCSCP) is a statutory pricing mechanism designed to incentivize employers to implement and sustain formal workplace safety programs through premium credits. To evaluate the effectiveness of this program, the PCRB analyzed 16 years of experience data, covering Policy Years 2006 through 2021.
This report examines participation levels, credit adequacy, loss experience, and policy characteristics for employers participating in PCSCP compared to non-participating eligible employers. The findings provide important context for understanding how safety-based pricing incentives interact with loss performance and overall system equity within Pennsylvania’s workers’ compensation market.
5% vs. 2%
Over 16 years, PCSCP participants received an average 5% premium credit, while experience indicated an overall debit of approximately 2% was needed to balance loss performance.
What’s in the report
- While the average PCSCP credit applied remained at approximately 5% throughout the study period, loss experience increasingly indicated that participating employers, on average, would have required debits to achieve parity with non-participating employers.
- Roughly 2% of eligible policies participated in PCSCP, representing about 21% of eligible premium over the 16-year period, with participation levels remaining relatively flat.
- Since approximately 2014, loss ratios for participating employers have increased at a slightly faster pace than those for non-participants, contributing to widening indicated debits.