Change to Three Decimals for Loss Costs and Expected Loss Rates

The Pennsylvania Compensation Rating Bureau (PCRB) is proposing to extend the decimal precision of ratemaking and experience rating values from two decimal places (X.XX) to three decimal places (X.XXX) for loss costs and expected loss rates. This change will be included in the Annual Loss Cost Filing effective April 1, 2026.

With an increasing payroll exposure base and declining loss costs and rates in the workers compensation system, continued filing of recommended values rounded to two decimal places presents challenges in achieving precise rating values, necessitating a shift to three decimal places.