Changes at the BWC: interview with Marsha Ryan: ideally, insurance programs operate quietly in the background, providing peace of mind.

• Position: Interview

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Problems, however, are quick to get attention, especially when the source is Ohio's Bureau of Workers' Compensation (BWC), a significant factor in Ohio's overall business climate. The Bureau's image was tarnished a few years back when improper investments became the punch line of concerns regarding oversight in government agencies.

Since that time, Administrator Marsha E Ryan has stepped in to strengthen BWC's reputation. The goal is a trim, efficient and effective BWC that enhances Ohio's business appeal. Catalyst editorial staff spoke with Ryan about the changes and sometimes tough choices that have been necessary for the health of Ohio business.

How is the new Board of Directors addressing the concerns that sprang from the investment scandals a few years ago?

In 2007, Gov. Strickland and the Ohio General Assembly passed a comprehensive reform bill that established a new Board of Directors comprised of constituents and professionals from specific disciplines: investing, actuarial science and accounting. Including professionals with expertise in these areas brings a new focus and discipline in making appropriate decisions.

For example, Ken Haffey, CPA, CVA, partner with Skoda Minotti and chair of the BWC Board of Director's audit committee, is bringing rigor to the internal and external audit processes. A member of The Ohio Society of CPAs, Ken possesses effective, practical experience in navigating complex issues. He stands up for changes that might not be popular, but are needed to shape a reformed system. We also have two senior investment experts, Alison Falls and Robert Smith, each with long careers in institutional investment and investment management. Charles Bryan is an actuary with national and international experience in actuarial science and also brings a national governance perspective.

Such strong leadership from these constituency groups creates natural partnerships and ensures we are hearing all sides.

What other changes resulted from House Bill 100?

We've launched a new, comprehensive study by Deloitte Consulting of the rates, reserves and surplus at the BWC. Prior to this, an outside entity had never studied our system and compared it with other states. Deloitte's year-long study looked at the rate program, how we establish discount reserves, expenses, plus the pros and cons of a public vs. private workers' compensation system. The final report, expected in June, will be a roadmap for all future...