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OKLAHOMA CITY—A debate in Oklahoma over legislation that would let employers leave the state’s workers compensation system could spill over to other states that are striving to contain insurance costs, sources say.

The issue is being led by large, multistate employers that have seen cost savings under Texas’ nonsubscriber system for workers comp, and hope to achieve the same benefits in Oklahoma, said Bill Minick, president of PartnerSource, a Dallas division of Arthur J. Gallagher Risk Management Services Inc. that supports the Oklahoma bill.

“You’ve got many national employers who are saying this is working so well in Texas, with tremendous cost savings coupled with higher injured-employee satisfaction,” said Mr. Minic Read more…

Signs point to more unprofitable years ahead for the workers compensation insurance industry, according to a Standard & Poor’s Corp. report released Monday.

While pricing for workers comp insurance modestly improved during the latter part of 2011, New York-based S&P said it is uncertain whether the pace of rate increases will be sustainable over the next few years and whether it will sufficiently overcome increased loss costs.“Continued high unemployment in the U.S., a sluggish economic recovery, potential for higher inflation on future claims payments, adverse reserve developments, and a volatile investment environment with historic-low investment yields could add up to many years of unprofitability for the workers compensation industry,” according to the report, “For The U.S. Pro Read more…