Oklahoma Looks to Privatize Workers’ Comp Insurance Company

August 7, 2009

The state of Oklahoma recently created a task force that will begin the job of finding a way to privatize its workers’ compensation insurance company. The state program was created to offer an affordable insurance solution to the state’s employers. However, after several private companies started popping up around the state, the government felt that it was time to close the company’s doors.

Many state officials agreed that it is not an appropriate role of the government to compete with private enterprise. In addition, by selling the state’s assets in the company to other existing companies, the state will be able to earn some revenue and save some funds to help decrease the budget deficit.

The company, CompSource Insurance, has about 300 employees, which will most likely be absorbed into another private company. The agencies 26,000 policyholders will also be taken in by the new owner.