Oklahoma employers could pay less for workers’ compensation insurance next year. The National Council on Compensation Insurance (NCCI) has proposed an overall loss cost decrease of 2.3 percent in a filing that many insurers use to develop prices. NCCI credits the reduced loss cost to favorable experience across all industry groups.
“This is great news for Oklahoma,” said Oklahoma Insurance Commissioner John D. Doak. “When employers pay less for workers’ compensation insurance, they’re able to grow their businesses, hire more workers and expand the economy. Oklahoma’s commitment to a system that’s both efficient and fair has been tremendously successful on multiple levels.”
The new loss costs will go through a review process and are expected to go into effect on Jan. 1. NCCI files loss costs annually with the Oklahoma Insurance Department and files supplemental amendments, when needed, to address significant changes in expectations such as court decisions.
“The current decrease, following decreases of 16 percent and 10 percent, puts to rest any prior skepticism and confirms that the decreases in prior years were warranted,” said Dr. Mark Crawshaw, president of Madison Consulting Group Inc., who performs an actuarial review of the filing.
Since Commissioner Doak took office in 2011, Oklahoma has seen loss cost filings totaling a decrease of almost 64 percent. The 2019 filing will be discussed in detail at two State Advisory Forums. The Tulsa forum will be held on Oct. 9. The Oklahoma City forum will take place on Oct. 10. For more information, click here.
The NCCI is a licensed rating and statistical organization that gathers data, analyzes industry trends and prepares workers’ compensation rate filings for many states. Most workers’ compensation carriers use the NCCI loss cost values when determining the rates charged to Oklahoma employers.
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.