North Dakota - A Workers Compensation Mutual Insurance Company?

As I had predicted in my previous posts, North Dakota may soon turn into a mutual Workers Comp Insurance company such as Nevada did with Employers Holdings Inc., and West Virginia did with Brickstreet. Both of those companies are having somewhat of a success in being a private insurance carrier, and they both have a full market with West Virginia opening their market July 1, 2008.

North Dakota lawmakers will explore the potential for converting the state's monopoly workers compensation insurer into a competitive mutual insurer. A North Dakota legislative committee is scheduled July 10 to hear from insurers in West Virginia and Nevada, where state workers compensation insurers have converted to private insurers. North Dakota Workforce Safety & Insurance is now the only insurer allowed to provide workers comp coverage in the state. If lawmakers press ahead with legislation, other workers comp insurers would be allowed to operate in the state.

The most fair way to price Workers Compensation insurance is with a free and open market. Time and time again, removing the government from an operation almost always makes the economy for that product or service become more profitable, and provides a higher level of service. A recent example is the removal of tobacco subsidies by the federal government.

I applaud North Dakota for their efforts, just as I have for the tremendous effort by the West Virginia Department of Insurance.