WORK COMP RATE HIKE NOT NEEDED:

Oklahoma Gov. Brad Henry urged state regulators to reject a proposed increase in workers’ compensation insurance rates, citing a new actuarial report that indicates a rate hike is not necessary. Oklahoma Attorney General Drew Edmondson, who represents businesses and consumers in rate cases, compiled the report. Legislators should “hold the line on comp rates so Oklahoma businesses don’t get stuck with an unnecessary rate hike,” Henry said. Insurance industry representatives requested an 11.5 percent increase in loss cost rates, but Edmondson’s actuarial study called that request “excessive.” The report said market conditions did not support a rate hike and noted that a case could be made for a 5 percent rate decrease if only Oklahoma private carrier data were analyzed. The final recommendation of the actuary was no increase. The actuarial study and the insurance industry’s request will be presented to the State Board for Property and Casualty Rates at a rate hearing on Sept. 28. The board determines workers’ comp rates for private insurance carriers in Oklahoma. In an effort to further reduce workers’ compensation costs, Gov. Henry appointed a bipartisan working group of industry experts to draft a reform proposal. The panel’s recommendations are expected to serve as the foundation for a reform package that will be considered next legislative session.

Topics Workers' Compensation Pricing Trends Oklahoma