AUGUST 28, 1996 -- Erie Insurance Group announced today that it has received approval for new workers' compensation rates in Pennsylvania that will result in a rate decrease for its insureds of more than $16 million.

These changes are a result of ERIE's loss experience and the savings anticipated by the recent passage of workers' compensation reform legislation, Act 57, by the Pennsylvania legislature on June 24, 1996. In signing the legislation, Governor Tom Ridge called it one of "the most important pieces of legislation" ever to come out of the General Assembly.

The new law took effect on August 23, 1996. Erie Insurance Policyholders will see the new rates as their policies renew on or after September 1, 1996.

Erie Insurance Exchange is the fourth largest workers' compensation insurer in Pennsylvania and the 23rd largest property casualty insurer in the nation. Other member companies of the Erie Insurance Group include Erie Insurance Company, Erie Family Life Insurance Company, Flagship City Insurance Company, Erie Insurance Property & Casualty Company and Erie Insurance Company of New York. Erie Insurance Group, headquartered in Erie, Pennsylvania, operates in nine states and the District of Columbia.