Workers’ Compensation Loss Costs Fall for Second Straight Year
Published: September 26th, 2014
For the second straight year, workers’ compensation loss costs used by insurers to determine rates for employers will show an overall decrease. The National Council on Compensation Insurance (NCCI) has filed an overall loss cost level decrease of 7.8 percent, bringing the total two-year decrease to 22.4 percent.
“This is great news for Oklahoma’s economy,” said Oklahoma Insurance Commissioner John D. Doak. “When employers pay less for workers’ compensation insurance, they can more easily grow their business, hire additional workers and expand local economies. I’m extremely encouraged to see the continuation of this positive trend. I don’t think it’s a coincidence that it all started with Oklahoma’s push for workers’ compensation reform.”
Commissioner Doak praised Oklahoma lawmakers and Gov. Mary Fallin for their efforts to improve the state’s workers’ compensation system.
“The new workers’ compensation system is less adversarial, less costly and better at getting injured workers healthy and back on the job,” said Fallin. “By reducing costs for Oklahoma businesses it is also saving employers millions of dollars that can be invested in new, good-paying jobs.”
A year ago this month, the shift to an administrative system hinted savings would be immediate. The new NCCI filing is a sign the savings to state businesses will be sustained.
The NCCI is an advisory organization that studies workplace injuries, collects workers’ compensation claim data, analyzes industry trends and develops loss costs to be used in the ratemaking process. Most workers’ compensation carriers use the NCCI loss cost values when determining the rates charged to Oklahoma employers. NCCI credits Oklahoma’s premium level decrease to declines in market experience and market trend, as well as recent reforms.
The new loss costs go into effect on Jan. 1.
About the Oklahoma Insurance Department: An agency of the State of Oklahoma, the Insurance Dept. is responsible for the education and protection of the insurance-buying public and for oversight of the insurance industry in the state.