I previously discussed how privatizing Ohio’s workers’ compensation system would harm Ohio’s economy and negatively effect Ohio’s insurance industry. The present push to privatize is coming from large national insurance companies. Ohio’s domestic insurance companies have never supported this concept. In delving into this deeper, I believe it is fair to say that the privatization of our workers’ compensation system has the possibility of destroying Ohio’s insurance industry.
The selling of workers’ compensation insurance coverage is generally part of a comprehensive package. Many of our domestic companies are small or moderately sized, unable to provide this type of package and thus, unable to compete with these foreign national companies. This is why Dr. Robert Hartwig, in testifying before the Competitive Workers’ Compensation Task Force, cautioned that any change in Ohio’s system had to be made in small increments in order to provide for a free, open and level playing field. Dr. Hartwig advised that this would be the only opportunity for Ohio’s insurers to remain profitable.
What is at Stake? Ohio Jobs and Tax Revenue!
The insurance industry is clearly a footprint to a strong Ohio economy and a large contributor of Ohio jobs. According to the Ohio Insurance Institute, Ohio is a leading insurance state with 265 insurance companies domiciled in the state. It is ranked sixth in the United States with 136 domiciled property/casualty insurance companies. Ohio companies employ over 103,000 Ohio taxpaying citizens.
This really is a contest between David and Goliath, Ohio’s domestic insurance industry versus these national foreign companies. All Ohioans must bet on David for the good of our state, and oppose any attempt to privatize Ohio’s workers’ compensation system.