OKLAHOMA CITY, Sept. 5, 2013 /PRNewswire/ -- 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 Tempore 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.
The NCCI 2013 State Advisory Forums will be held October 9 at the Waterford Marriott in Oklahoma City and October 10 at the University of Oklahoma-Tulsa Schusterman Center. For the most up-to-date information regarding the Oklahoma workers compensation reform, please visit http://www.ok.gov/oid/workerscompreform.html.
ABOUT THE OKLAHOMA INSURANCE DEPARTMENT
The Oklahoma Insurance Department, an agency of the State of Oklahoma, is responsible for the education and protection of the insurance-buying public and for oversight of the insurance industry in the state.
Roy Wood, NCCI State Relations Executive
Roy_Wood@ncci.com
(314) 843-4001
For more information contact:
Kelly Collins
(405) 522-0683
kelly.collins@oid.ok.gov
SOURCE Oklahoma Insurance Department
