Oklahoma businesses recently caught a break from the Oklahoma Insurance Department. On October 14, 2020, the Oklahoma Insurance Department approved a 9.6 percent decrease in Workers’
Compensation loss costs for 2021.1
Loss costs are the average cost of lost wages and medical payments of workers injured within the course and scope of their employment. This will mark the 10th year in a row that average Workers’ Compensation loss costs have decreased.
Since first taking office in 2011, Governor Mary Fallin-Christensen2 made it one of her administration’s primary initiatives to establish a Workers’ Compensation system that would encourage business growth within the State. Immediately, her administration worked to implement changes in the State’s Workers’ Compensation system that would focus on efficiently providing benefits to injured workers while lowering costs for employers. Since implementing those changes, which included the creation of the Oklahoma Workers’ Compensation Commission, there has been a 54 percent decrease in loss costs in Oklahoma.
This is positive news for employers who are looking forward to a reduction in their Workers’ Compensation insurance premium costs which should contribute to an overall reduction in the costs of doing business within the state.
Additionally, lost-time claim frequency has decreased significantly in Oklahoma for each of the past 15 years. The Oklahoma Insurance Department expects this trend to continue into 2021.
The new loss costs will go into effect for new and renewing policies effective January 1, 2021.
CONTACT US:
Christensen Law has specialized in Workers’ Compensation Defense of employers and insurance carriers for over 35 years. If you have a need or wish to discuss specific Workers’ Compensation related questions, please contact us at Christensen Law.
CHRISTENSEN LAW, P.L.L.C.
The Parkway Building
3401 NW 63RD STREET, SUITE 611 OKLAHOMA CITY, OK (405)239.2121 (TELEPHONE) (405)236.1012 (FACSIMILE)
wade@christensen.law
gary@christensen.law
brad@christensen.law
josh@christensen.law
mary@christensen.law
1 The Oklahoma Insurance Department Press Release can be viewed in its entirety at:
https://dingo.telicon.com/OK/library/2020/2020101498.PDF
2 Since August 2020, former Governor Mary Fallin-Christensen has assumed a role as a Senior Advisor and Consultant with Christensen Law.
***The information provided in this post does not, and is not intended to, constitute legal advice or establish an attorney-client relationship; instead, all information, content, and materials provided herein are for general information purposes only. ***
