A 9.6 percent decrease in Oklahoma workers’ compensation insurance loss costs for 2021 has been approved by the state’s insurance commissioner.
According to Commissioner Glen Mulready and the Oklahoma Insurance Department, this will mark the 10th year in a row that average workers’ compensation loss costs have decreased.
Since 2011, there has been a 54 percent decrease in loss costs. Loss costs are the average cost of lost wages and medical payments of workers injured during their employment.
“The biggest driver in bringing down the loss costs portion of premiums is what is actually paid out in claims and the reduction in the number of claims being filed,” Mulready said in a media release.
He also notes that Oklahoma lost-time claim frequency has come down significantly over the last 15 years (by almost 50%), and is projected to continue to decline into 2021.
The National Council on Compensation Insurance (NCCI), a licensed rating and advisory organization, collects annual data on workers compensation claims for the insurance industry. NCCI is authorized to make recommended lost cost filings on behalf of workers compensation insurance companies in Oklahoma.
The new loss costs will go into effect for new and renewing policies effective Jan. 1, 2021.
Source: Oklahoma Insurance Department
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