Oklahoma oil and gas companies receive spending credits through the EnergyComp program

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    Oklahoma oil and gas companies receive spending credits through the EnergyComp program

    The program is open to all CompSource-appointed Oklahoma insurance brokers

    INSURICA-powered EnergyComp 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 companies improve their risk profiles and receive credit for the investments they make in building a strong safety culture.

    Program members can access the EnergyComp program through any licensed Oklahoma independent insurance agent assigned to CompSource Mutual.

    The cost of workers’ compensation claims is rising

    The workers’ compensation sector of the commercial insurance industry is generally a stable and profitable segment for insurance companies. With growing concern about seriousness, demands in this market have become more expensive.

    While the frequency of claims has decreased, several factors are contributing to higher claims costs.

    According to a survey by the National Insurance Compensation Board, the top challenges for the workers’ compensation sector are a changing workforce and rising medical costs as a result of healthcare inflation, treatment innovation and hospital consolidation.

    A changing workforce

    In 2021, 23% of the US workforce was over 55 years of age, and most experts agree that the aging workforce is the primary driver of wage increases for workers. Workers age 55 and older account for more than a fifth of injuries and 31% of costs. Older workers are also more likely to have co-morbidities such as diabetes, heart disease or mental health problems, leading to slower recovery, more complex and expensive treatment and longer absences from work than younger workers.

    However, a young workforce can also lead to costly claims. As more employers experience labor shortages, they may hire less experienced workers whose lack of knowledge may make them more susceptible to injury. Industries such as energy, construction, and manufacturing, which experience labor shortages, may experience an increase in serious injuries, including falls, burns, or accidents involving machinery or driving.

    Medical inflation

    Medical inflation has also increased the cost per claim. According to Rising Medical Solutions, medical inflation rose to 6.6% for workers’ compensation in 2021, compared to a three-year average of 6.4%. In addition, medical facility mergers and physician practice consolidations drive up costs.

    As the number of objects decreases, their bargaining power increases, leading to higher costs. Improvements in technology have also increased claims costs; as the equipment is more expensive, so is the treatment.

    Get spending credits through EnergyComp

    How can your Oklahoma energy business avoid rising workers’ compensation costs and save money with EnergyComp?

    The program is a four-step process that explores all areas of business risk management, including workers’ compensation, culture, fleet and vehicles, health and safety, environment and contracts. 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 investment in building a strong security culture. Best-in-class businesses deserve best-in-class prices.

    Learn more at INSURICA.com/EnergyComp or contact us at EnergyComp@INSURICA.com to schedule an energy risk assessment today.

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