Actuarial audit

Annual actuarial audit September 5, 2008 Actuarial Audit of the Workers’ Compensation State Insurance Fund and Related Funds Administered by the Ohio Bureau of Workers’ Compensation as of June 30, 2008 Ohio Bureau of Workers’ Compensation Ohio Bureau of Workers’ Compensation Audit as of June 30, 2008 Contents PAGE Introduction.......................................................................................................................... i Caveats................................................................................................................................ ii Organization of Report ...................................................................................................... iii Executive Summary........................................................................................................... iv Summary of Analysis........................................................................................................ vii Significant Changes in Assumptions/Methodology – Interest Rate and Medical Inflation Utilization Assumptions................................................................. ix Cost Trend Analysis xi Discussion of Medical Inflation Assumptions xiii Discussion of Permanent Total Disability (PTD) Claim Frequency ............................... xvi EXHIBIT Comparison of Indicated Unpaid Loss and LAE at 6/30/08 to Preliminary Unpaid Loss and LAE at 6 ...