Oklahoma Oil & Gas Businesses Receive Cost Credits Through EnergyComp Program
Program Open to All CompSource Appointed Oklahoma Insurance Brokers
EnergyComp powered by INSURICA is a workers’ compensation program from CompSource Mutual, designed exclusively for Oklahoma’s oil and gas industry. EnergyComp is committed to helping all Oklahoma energy businesses improve their risk profiles and receive credit for the investments they make in building strong safety cultures.
Program participants can access the EnergyComp program through any licensed Oklahoma independent insurance agent appointed with CompSource Mutual.
Cost of Workers’ Compensation Claims on the Rise
The workers’ compensation sector of the commercial insurance industry is generally a stable and profitable segment for insurance carriers. With concerns over severity on the rise, claims in this market have become costlier.
While the frequency of claims has declined, several factors contribute to increasing claim expenses.
According to a survey by the National Council on Compensation Insurance, the top concerns for the workers’ compensation sector are the changing workforce and rising medical costs resulting from medical inflation, treatment innovations, and hospital consolidations.
The Changing Workforce
In 2021, 23% of the U.S. workforce was older than 55, and most experts agree the aging workforce is a prominent cause of workers’ compensation increases. Workers 55 and over account for over one-fifth of lost-time injuries and 31% of the costs. Older workers are also more likely to have comorbidities, such as diabetes, heart disease, or mental health issues, resulting in a slower healing process, more complex and expensive treatments, and longer time away from work than younger workers.
Still, younger workforces can also lead to expensive claims. As more employers experience labor shortages, they may take on less experienced staff, whose lack of expertise can make them more susceptible to injury. Industries impacted by the labor shortage, such as energy, construction, and manufacturing, may see severe injuries increase, including falls from heights, burns, or machinery- or driving-related accidents.
Medical inflation has also resulted in an increased cost per claim. According to Rising Medical Solutions, medical inflation bumped up to 6.6% in 2021 for workers’ compensation, up from the three-year average of 6.4%. In addition, mergers between medical facilities and consolidations of physicians’ practices are driving up costs.
As the number of facilities decreases, their bargaining power increases, leading to increased costs. Improvements to technology have also increased claim costs; since the equipment is more expensive, so is the treatment.
Receive Cost Credits Through EnergyComp
How can your Oklahoma energy business avoid rising workers’ comp claim costs and save money through EnergyComp?
The program is a four-step process exploring all areas of risk management for businesses, including workers’ compensation, culture, fleet and auto, health and safety, environmental and contractual. Program participants complete a 38-question Energy Risk Assessment, earning premium credits based on their overall safety scores.
CompSource believes that businesses should be rewarded for their investments in building strong safety cultures. Best-in-Class businesses deserve Best-in-Class pricing.
Learn more at INSURICA.com/EnergyComp or contact us at EnergyComp@INSURICA.com to schedule your Energy Risk Assessment today.