CompSource Oklahoma President and CEO
“Providing a strong, stable source for workers’ compensation insurance will always be our first priority.”
CompSource takes pride in its rich history of protecting Oklahoma’s workforce. 2013 marked our 80th year of business and we are proud of the role we play in Oklahoma’s workers’ compensation market. While this year was a time for celebration and reflection, it was also the most significant year of growth in our company’s history. The steps we have taken to ensure continued success in the future will allow us to enhance the services we provide and continue to fulfill the commitment made to Oklahomans 80 years ago. Providing a strong, stable source for workers’ compensation insurance will always be our first priority.
As we have discussed in the past, the Oklahoma Legislature passed the CompSource Mutual Insurance Company Act, privatizing CompSource Oklahoma, in May of 2013. Taking effect Jan. 1, 2015, this change allows for CompSource Oklahoma to transition from a quasi-state entity to a private, mutual insurance company. Although this will be a significant change for our organization, CompSource’s commitment to Oklahoma and its business community will not change. We will continue serving Oklahoma as the assured market for workers’ compensation insurance, a service that we are proud to provide. Protecting Oklahoma’s most valuable asset, its people, will remain at the forefront of all that we do.
Our commitment to protecting Oklahoma’s workforce begins with preventing workplace accidents. By partnering with our policyholders to stop workplace accidents before they happen, we are not only keeping Oklahoma’s workers safer but also being financially responsible as a company. We dedicate a significant amount of resources to assist policyholders in providing the safest possible work environments, including offering employers access to industry-specific safety education programs, train-the-trainer opportunities, sample safety manuals and other loss prevention resources. In addition, we have a dedicated staff of safety consultants who assist employers in determining the most effective loss prevention strategies for their organizations. Fostering a loss prevention culture and investing in the safety of their workplace empowers business owners to play a part in controlling their workers’ compensation costs.
In 2013, the Loss Prevention department’s safety consultants conducted approximately 3,000 workplace visits to policyholders across the state. Partnering with policyholders to create a culture of safety within their businesses is the guiding force behind the decision to offer the services of a dedicated team of safety professionals. In the coming year, we plan to increase the safety resources available to employers by launching a new section of our website devoted to safety and loss prevention services and offering access to streaming safety and health videos and pre-packaged safety talks.
Another vital aspect of protecting Oklahoma’s workforce is having the knowledge, skill and experience to help guide our policyholders and claimants. We pride ourselves on the fact that our policyholders, agents, injured workers and others in the industry look to us for our expertise. Being knowledgeable of our state’s system has become even more important with the landmark legislation passed in 2013 when Gov. Mary Fallin signed Senate Bill 1062 into law. This legislation created the Administrative Workers’ Compensation system, changing Oklahoma’s court-based system to an administrative system. As an organization, we have made it a priority to familiarize ourselves with all aspects of this new law, especially when it comes to our Claims Adjusters. It’s important that we quickly gain the same level of expertise with the new system that we have with the previous system and we are optimistic that the new system will help get claims settled in a more expedient manner and ultimately help lower the cost of claims.
As we move forward as a company, we understand that enhancing our service offerings will be an important part of our success, which is what led to the decision to upgrade our enterprise software solution. This was a necessary step in allowing us the flexibility to expand and enhance the technology as we continue to grow. The new system will increase our operating efficiency, standardize more internal processes and assist us in providing enhanced service to our policyholders and injured workers. This year we have completed several phases of development and testing in preparation for the implementation of this new system, which is expected to launch in August of 2014 and will have positive effects for years to come.
In addition to the significant advancements made in 2013, we also had an exceptional year financially. During the year, our earned premiums increased 10.6 percent and our loss ratio improved to 96 percent from 101.5 percent in 2012. These improved results were primarily due to a hardening workers’ compensation market, improved pricing strategies, an increase in agent program premium and more effective claims-management practices.
As I look back on 2013 and all the positive change that occurred, I know that CompSource is stronger than ever and poised for future success as a private, mutual insurance company. On behalf of the Board of Managers and the employees of CompSource, thank you for your continued support.