Oklahoma City, OK – Commissioner Glen Mulready recently announced that the Oklahoma Insurance Department had approved a 9.4 percent decrease in workers’ compensation insurance loss costs for 2022. This reduction will lead to lower premiums for many Oklahoma businesses.
Loss costs are the average cost of lost wages and medical payments of workers injured per $100 of payroll or as a percentage of payroll. Since 2011, there has been a 59 percent decrease in loss costs. Moreover, 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 2022.
“I am excited to approve this decrease and help businesses in our state,” Commissioner Mulready said. “In 2014, the Workers’ Compensation Commission became effective, and this commitment to a new administrative system, along with our cost-efficient, competitive workers’ compensation insurance market continues to show employers that Oklahoma is an attractive place to do business.”
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 January 1, 2022.