Workers’ Comp Loss Costs Declining Again in Oklahoma

For the second straight year, workers’ compensation loss costs used by insurers to determine rates for employers will show an overall decrease in Oklahoma.

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, the Oklahoma Insurance Department announced.

Commenting on the decrease, Oklahoma Insurance Commissioner John D. Doak said he doesn’t “think it’s a coincidence that it all started with Oklahoma’s push for workers’ compensation reform.”

He commended Oklahoma lawmakers and Gov. Mary Fallin for their efforts to improve the state’s workers’ compensation system.

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.

Senate President Pro Tempore Brian Bingman, the author of the 2013 workers’ comp reform legislation, said the reforms are saving Oklahoma businesses money and “allowing employers to reinvest in our state, expand and add more good jobs. This sharp reduction in premium rates further confirms that our legislation has lowered the cost of doing business in Oklahoma.”

Topics Trends Profit Loss Legislation Workers' Compensation Oklahoma