Oregon employers in the voluntary market pay, on
average, the 38th highest workers compensation premium
rates in the nation.
Oregons premium rate index is $2.27 per $100 of payroll.
National premium rate indices range from a low of $1.47 in South
Carolina to a high of $4.86 in California. Five jurisdictions
have index rates above $4.00; 12 are in the $3.00-$3.99 range;
27 have indices between $2.00 and $2.99; and seven have index
rates under $2.00. Indices are based on data from 51 jurisdictions,
for rates in effect as of January 1, 1998.
Classification codes from the National Council on Compensation
Insurance (NCCI) were used in this study. Of the approximately
452 active classes in Oregon, 50 were selected based on relative
importance as measured by share of losses in Oregon. To control for differences in industry distributions,
each states rates were weighted by 1992-1994 Oregon payroll
to obtain an average manual rate for that state. Listed in Table
1 are Oregons rankings in the top 10 of the 50 classifications
Table 2 contains the premium rate ranking for all 51 jurisdictions.
Note: Californias loss cost multiplier
for 1998 is more than twice the reported 1996 multiplier. The
difference does not reflect an actual increase however, but the
effect of using a premium weighted average multiplier, consistent
with the methodology of the study, as opposed to a straight average
in 1996. The premium weighted lost cost multiplier includes Californias
state fund which serves 20 percent of the market, both as a voluntary
insurer and as the insurer of last resort, and has a loss cost
multiplier of 1.743. It is not possible to separate out only
the state funds voluntary business. The state fund insures
small employers with premiums under $1,000 per year. Those employers
pay rates based on the 1.743 rate, but larger employers are granted
credits which reduce the effective multiplier. In fact, for the
total market in 1998, Californias Actual Price Level Factor,
the ratio of final insurer aggregate rates to pure premium rates,
was .96. For consistency, this study does not include any credits
granted to employers on an individual basis, and thus can reflect
only the premium weighted average loss cost multiplier of 1.424.
Employers can reduce their workers' compensation rates
through accident prevention, safety training and by helping injured
workers return to work.
If you have questions about the information
contained in this document please contact by e-mail or phone:
Research Analyst, Research & Analysis Section, Information
Management Division (503) 947-7338
This document was originally published in
February 1999. Printed form: 440-2082 (02/99/IMD)
Document URL: http://www.cbs.state.or.us/external/imd/rasums/2082/8_2082.html
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