Oklahoma Insurance Commissioner Glen Mulready has welcomed newly approved legislation that will grant regulators greater authority to review homeowners’ insurance rates, while also announcing plans for a public hearing later this year on competition within the state’s insurance market.
The measures come amid continuing debate over insurance affordability and market stability in Oklahoma, where insurers and policymakers have faced mounting pressure over rising homeowners’ premiums linked to severe weather risks and claims costs.
In a statement issued from Oklahoma City, Mulready said the signing of House Bill 3781 would introduce a revised “file and use” system that enables the Oklahoma Insurance Department to scrutinise rate filings more closely once the law takes effect in July 2027.
“I have shared many times over the past year that there was no authority in our statutes to intervene in filed rates from insurers in our homeowners market. I’m pleased to see this addressed with the signing of HB 3781. The department has already begun preparing for this new file and use process, which will become effective on July 1, 2027. This new process allows us to review filed rates throughout the year and push back against any excessive rate that is not actuarily confirmed by our own regulatory team.”
The legislation represents a notable shift in regulatory oversight for Oklahoma’s homeowners’ insurance sector, providing state officials with expanded powers to assess whether proposed rate increases are justified by actuarial evidence.
Mulready said the department had already started preparations for implementation of the new framework, which is expected to affect future interactions between insurers and regulators operating within the state.
Debate Continues Over Consumer Protection Measures
While welcoming the legislative changes, Mulready also expressed disappointment that additional proposals aimed at consumer protection were not adopted during the latest legislative session.
The commissioner argued that several reform measures previously highlighted by the department had failed to advance despite being used in other states seeking to improve insurance market conditions.
“However, I am very disappointed that other opportunities to pass consumer protection legislation we highlighted in December last year were killed by industry lobbyists and trial lawyers this session. These were simple reforms that have been implemented in other states where markets have rebounded, including mandatory mediation. For too long, trial lawyers have disguised profit-driven litigation as consumer protection while Oklahoma families and businesses pay the price through higher insurance premiums. We cannot allow excessive litigation to become a business model that drives affordability further out of reach for hardworking Oklahomans.”
The comments reflect wider national discussions within the insurance industry concerning litigation costs, claims disputes and their potential impact on premiums paid by homeowners and businesses.
Industry observers have noted that insurers in catastrophe-prone regions across the United States continue to face increased financial pressures stemming from weather-related claims, rebuilding costs and legal expenses.
Public Hearing to Examine Market Competition
Mulready also confirmed that the Oklahoma Insurance Department will hold a public hearing in September to examine whether the state’s homeowners’ insurance market demonstrates an appropriate level of competition.
The hearing is expected to include presentations and evidence from multiple parties, with an independent hearing officer tasked with providing a formal opinion on market concentration.
“I also stand by my position that we have a competitive market for homeowners insurance coverage. All significant indicators (Including those used by the Department of Justice, Federal Trade Commission, Federal Reserve, and the National Association of Insurance Commissioners) support our analysis of market concentration. However, considering this new law and to provide certainty for future rate filing processes, I am announcing today that we will convene a public hearing in September to determine whether a reasonable degree of concentration does or does not exist in Oklahoma’s homeowners insurance market. This hearing will allow presentations of evidence from different parties about this topic so that we can receive a formal opinion from an independent hearing officer and move forward accordingly.”
The commissioner said the hearing would help provide clarity ahead of the implementation of the revised rate review system and could influence future regulatory decisions involving insurers operating in the state.
Timing of Hearing Linked to Election Calendar
Mulready added that the timing of the hearing had been deliberately scheduled after upcoming primary elections to avoid the process becoming entangled in political campaigning.
“Finally, I am keenly aware of the political posturing and maneuvering that takes place around policy issues facing Oklahomans during campaign season. This hearing is being set beyond our upcoming primary elections so that it is not a runaway train for political candidates to get an extra soundbite. We have worked hard to stay in our lane and have remained laser focused on developing policy ideas, getting homes FORTIFIED™ and wrapping up investigations into roof claims. We look forward to a new rate filing process and future next steps.”
The Oklahoma Insurance Department said it will provide further details on the public hearing in the coming months as preparations continue for the implementation of the new regulatory framework.
