Oklahoma Approves 5% Cut in Workers’ Compensation Loss Costs for Next Year

A 5.1% percent decrease in workers’ compensation insurance loss costs in Oklahoma for 2020 has been approved by Insurance Commissioner Glen Mulready, the state insurance department announced.

Loss costs are the average cost of lost wages and medical payments of workers injured during their employment. The state’s lost time claim frequency is projected to continue its downward trend into 2020.

According to the Oklahoma Insurance Department, the new loss costs go into effect on Jan. 1, 2020, for new and renewing policies.

“This is excellent news for Oklahoma businesses,” Mulready said in a departmental release. “The decline in workers’ compensation rates will lower the cost of doing business in our state.”

The National Council on Compensation Insurance (NCCI), a rating and advisory organization, collects annual data on workers compensation claims for the insurance industry. NCCI publishes loss costs that form the basis for all workers compensation premium determinations. Oklahoma insurers use the NCCI loss costs as a base.

Source: Oklahoma Insurance Department