An upcoming election has a massive impact on every industry and corporate function across the country. And with this year’s election likely to have more of an affect than most, uncertainty is a word that’s resonating with so many Americans at the moment: uncertainty around the economy; uncertainty around potential changes in foreign policy; uncertainty for the political future of the United States.
Workers’ Comp is a space that is not getting spared in the shaky socioeconomic landscape. The vote will have a direct impact on the industry with five insurance commissioner positions and 12 gubernatorial seats due to be decided. “The workers’ compensation industry needs to be paying attention to these elections because the insurance commissioners can have significant influence over procedures, policies and enforcement in their states,” explains vice president of communications and strategic analysis at Safety National, Mark Walls.
Walls is currently paying closest attention to the workers’ comp situations in Florida and Oklahoma. “I’m looking at how these states deal with their workers’ comp statutes in light of the fact the courts recently found significant elements of their workers’ comp laws to be unconstitutional,” Walls says. “In both states, there have been important court decisions this year, and there is still another one pending in Oklahoma for which we expect a decision any time soon. These court cases could lead to rate hikes in both states.”
The workers’ compensation situation in is particularly dysfunctional. “The NCCI has recommended rate hikes of over 20% because of the unconstitutional elements,” he says. “The Florida legislature will need to address this next year.”
Regarding the overall election result, Walls is eager to discover “the direction given to OSHA and the Department of Labor and how those departments interact with employers. With one candidate we can probably expect policies similar to the current administration. It is unclear how the other candidate views such issues.”
