The Oklahoma Department of Insurance says workers’ compensation loss costs used by insurers to determine rates for employers will show an overall decrease for the second straight year.
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 decrease is a result of the reforms we fought for, including moving our workers’ comp system to an administrative system,” said Jerrod Shouse, state director of NFIB/Oklahoma. “The ultimate result is lower premiums, which help small businesses.”
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.
