Okla. Gov. Henry: Work Comp Rate Hike Unnecessary

Oklahoma Gov. Brad Henry is urging 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.

The report in question was compiled by the Oklahoma Attorney General Drew Edmondson, who represents businesses and other consumers in such rate cases.

“According to the attorney general’s actuarial study, no rate increase is merited in Oklahoma this year,” said Gov. Henry. “I’m urging state regulators to listen to the attorney general and hold the line on comp rates so Oklahoma businesses don’t get stuck with an unnecessary rate hike. Business owners should not have to pay a penny more than is absolutely necessary.”

Last month, insurance industry representatives requested an 11.5 percent increase in loss cost rates, but this week, Edmondson released an actuarial study calling that request “excessive.” The report said market conditions did not support a rate hike and noted that a case could be made for a five 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.

“It will be a great boost to our business community if we can hold rates in check,” Gov. Henry said. “I hope other public officials will review the attorney general’s report and join me in my fight against a rate increase on business.”

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