Premium Credits Remain Stable as PCCPAP Participation Declines Across Pennsylvania’s Construction Industry:
The Pennsylvania Construction Classification Premium Adjustment Program (PCCPAP) is designed to address wage differentials within the construction industry by providing premium credits to higher-wage employers, while preserving actuarial balance through offsetting classification loadings. This analysis reviews PCCPAP experience for policy years 2006 through 2021, examining participation trends, average credits, loss ratios, and policy size.
The results highlight a program that continues to deliver consistent premium credits to participating employers, even as participation steadily declines and utilization becomes increasingly concentrated among larger policies. Together, these findings provide important context for understanding how PCCPAP is functioning within today’s construction marketplace.
6%
Only 6% of eligible construction employers participated in the PCCPAP in Policy Year 2021, representing a nearly 50% decline in participation since 2006. Despite this contraction, the program continues to deliver stable premium credits to participating employers.
What’s in the report
- Over the 16-year period, the average PCCPAP credit remained remarkably consistent at approximately 14.6%, with 2021 credits in line with long-term experience.
- On average, participating businesses experienced higher and more volatile loss ratios (67%) compared to non-participating employers (53%), reflecting both program dynamics and the smaller risk pool among participants. pcrb-2024-pccpap-analysis-of-ex…
- Participating policies are, on average, more than twice the size of non-participating policies, suggesting PCCPAP utilization is concentrated among employers with greater potential net benefit from premium credits.