OKLAHOMA CITY – The Oklahoma Insurance Department has approved a 9.6% decrease in workers’ compensation insurance loss costs for 2021.
The new loss costs will go into effect for new and renewing policies effective January 1, 2021.
This will mark the 10th consecutive year that average workers’ compensation loss costs have decreased, State Insurance Commissioner Glen Mulready said. Loss costs have declined 54% since 2011, he said. 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.
Lost-time claim frequency in Oklahoma has come down significantly over the last 15 years – by almost 50% – and is projected to continue to decline into 2021, he said.
“This is excellent news for Oklahoma businesses,” Mulready said. “The decline in workers’ compensation loss costs will aid in lowering the cost of doing business in our state.”
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.