Board Notes Success at Helm of Ohio Workers' Comp Bureau in Period After Theft of Millions

The Ohio Bureau of Workers' Compensation's board of directors, formed by the state's legislature, is marking its second year governing the bureau, and the board says it's been a successful start.

Administrator Marsha Ryan said in a statement that the board has made "great strides in making Ohio's workers' compensation system more insurance-like." Ryan said, "Within its first months, the board took on the issue of establishing fair and stable rates for all employers. In the two years since addressing this difficult and often contentious subject, the rates between group-rated and non-group-rated employers have leveled off significantly."

The bureau paid $2.1 million in claims in 2008, according to its financial reporting, and it administered claims for 143,199 injuries. It's the exclusive provider of workers' comp insurance to private and public employers in Ohio that aren't granted the privilege of paying compensation and medical benefits directly [self-insured employers], according to A.M. Best Co. reports (BestWire, Nov. 22, 2006).

The board said it oversaw back-to-back rate decreases for private employers in 2008 and 2009. It created more insurance options and established policy to limit rate swings because of employers' claim histories. The bureau's 2010 plan continues "efforts to reach operational excellence by ensuring stable costs, better services, accurate rates and safe workplaces. Internal initiatives will focus on continued operational cost savings and staff development," according to a board statement.

Before the board was established, the bureau made headlines because of the fraudulent actions of an official there.

Former fund manager Tom Noe is serving an 18-year prison sentence from a conviction on 29 counts, including theft, corruption and money laundering, in connection with his management of a $50 million rare coin investment held by the workers' comp bureau. Noe couldn't account for $10 million to $12 million worth of rare coins, according to investigators. The bureau's administrator, Jim Conrad, resigned over the issue (BestWire, Nov. 22, 2006).

The top five writers of workers' compensation in Ohio, according to A.M. Best Co. state/line product information based on direct premiums written, were: Liberty Mutual Insurance Cos., with 30.6% market share; Westfield Group, with 22.1%; Zurich Financial Services, with 17.0%; Chubb Group of Insurance Cos., with 12.4%; and Hartford Insurance Group, with 10.7%.