Ohio employers may soon receive a significant financial boost from the Ohio Bureau of Workers’ Compensation (BWC). Governor Mike DeWine has asked the BWC Board of Directors to approve a proposed $1 billion dividend for Ohio employers, marking what would be the fifth major dividend issued since 2019. If approved, the dividend would bring the total amount returned to Ohio employers during the DeWine administration to approximately $10.2 billion. According to the administration, the proposed dividend would equal roughly 90% of premiums paid during the 2022 policy year for eligible employers.
For independent insurance agents, this announcement represents more than just positive news to share. It creates an opportunity to strengthen client relationships, demonstrate expertise, and help employers think strategically about their workers’ compensation programs.
What We Know About the Proposed Dividend
The dividend is currently awaiting approval by the BWC Board of Directors, with action expected at its August meeting. State officials attribute the proposed payout to strong investment performance and favorable financial results within Ohio’s State Insurance Fund. The proposed dividend follows years of rate reductions and previous rebate programs that have collectively lowered workers’ compensation costs for Ohio employers. Ohio employers are also benefiting from some of the lowest workers’ compensation rates seen in decades.
Not every employer will automatically qualify, however. Employers that have not completed their 2022 policy year true-up or currently have a lapsed status may be ineligible for the dividend unless those issues are resolved by the BWC’s deadline.
That eligibility requirement alone presents an important opportunity for agents to proactively reach out to clients.
Proactive Outreach Matters
Many employers may hear media reports about a “90% refund” or a “$1 billion payout” and assume a check is guaranteed. Agents can add value by helping clients understand what the announcement actually means and what actions, if any, may be required.
Consider reaching out to commercial clients with a simple message:
“You may have seen recent news regarding a proposed BWC dividend. While the proposal is encouraging, employers should verify that their policy is in good standing and that any required true-up reporting has been completed to ensure eligibility if the dividend is approved.”
This type of communication positions agents as trusted advisors rather than simply insurance vendors.
Use the Dividend as a Springboard for Broader Conversations
The biggest mistake agents can make is treating the dividend as a one-time financial windfall. Instead, use the conversation to help clients evaluate their overall workers’ compensation strategy. As questions such as:
- Has your business experienced changes in payroll, staffing, or operations since your last workers’ compensation review?
- Are you maximizing available BWC savings programs?
- Have recent claims affected your experience rating?
- Is your safety program keeping pace with your organization’s growth?
These questions can spark conversations that uncover opportunities to improve long-term workers’ compensation performance rather than focusing solely on a short-term refund.
Remind Clients That Good Results Don’t Happen by Accident
Ohio’s workers’ compensation environment has experienced favorable trends in recent years, including declining claim frequency, multiple rate reductions, and substantial dividends. Industry experts continue to point to improved workplace safety, proactive claims management, and strong fund performance as key contributors to these results.
This creates an excellent opportunity to reinforce an important message with clients: a workers’ compensation dividend is not a substitute for strong risk management. Employers should continue focusing on things such as workplace safety training, return-to-work programs, claims reporting procedures, accident prevention efforts, and employee wellness initiatives. The employers that consistently manage these exposures effectively are often in the best position to take advantage of BWC savings opportunities over time.
Leverage OIA’s Workers’ Compensation Resources
This news also provides a natural opportunity to revisit workers’ compensation programs and services with your clients. OIA member agencies can help employers explore cost-saving opportunities through workers’ compensation group rating and retrospective rating programs, while also connecting them with resources related to claims management, safety initiatives, and overall workers’ compensation strategy. OIA’s workers’ compensation partners and staff are available to help agencies navigate client questions and identify solutions that may deliver value long after the dividend is issued.
Turn a Dividend into a Strategic Conversation
While clients may initially focus on the size of a potential dividend check, agents have an opportunity to expand the discussion. Use this moment to review payroll changes, claims activity, safety efforts, and participation in available BWC programs. These conversations can help clients better understand the factors that influence their workers’ compensation costs and identify opportunities for future savings.
The Bottom Line
The proposed $1 billion BWC dividend is welcome news for Ohio employers and another reminder of the favorable workers’ compensation environment that exists in Ohio today. If approved, many businesses could receive a meaningful return of premium, but the real value for agents lies in helping clients understand what the dividend means for their business and what steps they should take next. As questions arise, OIA and Sedgwick are available to help member agencies navigate the details and identify opportunities through OIA’s group rating and retro programs. Contact Colleen Elliott at colleen@ohioinsuranceagents.com to learn more about these options and whether your agency and your clients may be a good fit.
Frequently Asked Questions About the Proposed BWC Dividend
When will employers receive their dividend payment?
The dividend has been proposed but not yet approved. The BWC Board of Directors is expected to vote on the proposal at its August 28 meeting. If approved, BWC will provide additional details regarding distribution timing and payment processing. Agents should encourage clients to monitor communications from BWC for official updates.
How much will my client receive?
State officials have indicated the proposed dividend would equal approximately 90% of premiums paid during the 2022 policy year. Actual dividend amounts will vary based on an employer’s premium history and eligibility status.
Who is eligible to receive the dividend?
Employers who have not completed their 2022 policy year true-up or currently have a lapsed status may not qualify for the dividend. Eligible employers should ensure any outstanding compliance issues are resolved before the August 28 deadline identified by BWC.
What does this mean for the OIA Group Rating Program?
The proposed dividend does not replace the value of OIA’s Group Rating Program with Sedgwick. Group rating, retrospective rating, claims management support, and safety resources remain important tools for helping employers manage long-term workers’ compensation costs. The dividend would be a one-time payment, while participation in OIA’s programs can provide ongoing value year after year.
Should employers still participate in group rating or other BWC savings programs if they’re receiving a dividend?
Yes. The dividend is separate from the strategies employers use to control future workers’ compensation expenses. Employers should continue evaluating group rating, retro options, safety initiatives, and claims management practices as part of their overall workers’ compensation strategy.
Why is BWC able to issue such a large dividend?
According to state officials, the proposed dividend is possible because of BWC’s strong financial position, investment performance, and favorable claims experience. Ohio has also experienced multiple workers’ compensation rate reductions in recent years.
What should agents be discussing with clients right now?
This is a great opportunity to review workers’ compensation programs, confirm clients have completed any required true-up activities, discuss claims trends, and identify opportunities to improve workplace safety and control future costs. The dividend can serve as a conversation starter for a broader workers’ compensation review.
About the Author:
Colleen Elliott is the Marketing & Communications Manager for OIA and IA Valuations. Colleen graduated from The Ohio State University’s Fisher College of Business with a Bachelor of Science in Business Administration and has a background in sales and marketing. Colleen manages marketing campaigns for OIA and IA Valuations, communications with agents and state partners, and helps the IA Valuations team from an operational perspective. Colleen joined OIA in January 2023.
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