Oklahoma Workers Comp Rates to Drop 14.6% in 2014

OKLAHOMA CITY – An annual filing most insurance carriers will use to develop rates for workers’ compensation insurance shows a dramatic decrease in loss costs, Oklahoma Insurance Commissioner John D. Doak announced today. The overall loss cost decrease of 14.6 percent takes effect Jan. 1.

“This is fantastic news for Oklahoma businesses,” said Doak. “Reducing workers compensation costs by enticing new companies to come to the state and allowing current businesses to expand operations can trigger a new wave of economic prosperity. These decreases over a period of time will help to make Oklahoma much more competitive.”

The National Council on Compensation Insurance Inc. (NCCI) is an advisory organization that studies workplace injuries, collects workers’ compensation data, analyzes industry trends and prepares rate recommendations. The NCCI credits most of the decrease to the passage of SB 1062, which makes substantial changes to Oklahoma’s workers’ compensation system. The 14.6 percent projected reductions in loss costs represent the part of a workers’ compensation insurance premium for indemnity and medical payments and associated claim adjustment expenses, not reflecting overhead and profit.

“I commend Gov. Mary Fallin, Speaker of the House T.W. Shannon and Senate Pro Temp Brian Bingman for dedication to improving the state’s workers’ compensation system,” continued Doak. “With their outstanding leadership and belief in pro-growth policies, Oklahoma will continue to thrive.”

The overall average loss cost impact at an industry group level is as follows:

Industry Group Impact

Manufacturing -16.3%

Contracting -16.2%

Office and Clerical -13.4%

Goods and Services -14.1%

Miscellaneous -12.2%

TOTAL -14.6%

Other key observations from the report include lost-time claim frequency continuing to decline across the state, indemnity average cost per case increasing for latest policy year and loss adjustment expenses declining for a lower average than nationwide

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Chris Moxley

Chris began his career at a Norman insurance agency in 1988 serving as a Branch Manager for 3 years. He joined Professional Insurors in 1995 as a Producer and became Vice-President in 2004, where he overseas human resources and agency operations & technology as well as continuing to manage his client accounts and grow the business. The Agency works with a variety of accounts and Chris specializes in Workers Compensation Risk Management and Insurance. He has worked in Insurance for over 20 years and besides Workers Compensation he has specialized training and experience in the fields of Construction Risk Management and Risk Transfer, Property Management, & Manufacturing.