The Oklahoma Insurance Department has outlined an extensive legislative agenda for 2026, setting out reforms designed to strengthen consumer protections, accelerate claims processing and address the continued rise in homeowners insurance premiums. Announced in Oklahoma City, the package reflects growing concern about market instability and the increasing financial burden on households facing severe weather losses and higher construction costs.

Insurance Commissioner Glen Mulready said the proposals emerged from collaboration with lawmakers, industry representatives and consumer groups, with a focus on improving fairness and efficiency across the state’s insurance sector. “Oklahomans deserve an insurance market that is transparent, responsive, and accountable,” Mulready said. “This package addresses consumer frustrations—including slow claims responses, limited disclosure from insurers, and premium increases—while helping stabilize the state’s insurance market.”

He added that the measures reflect a broader effort to provide timely assistance to residents dealing with property damage and rising insurance costs.

Legislators Voice Support for Consumer-Centred Reforms

Rep. Mark Tedford, R-Tulsa, said the reforms align with ongoing work to strengthen resiliency measures and close gaps in current law. “It has been a challenging few years for Oklahoma policyholders. While we can’t control severe weather or the rising cost of building materials, strengthening property resiliency, pursuing tort reform, and closing administrative loopholes in current law are the right steps forward,” he said. “I applaud the commissioner’s commitment to ensuring policyholders receive prompt and fair treatment before and after a claim. Combined with recent anti-fraud and tort-reform measures, I believe the Legislature has taken meaningful action to put sound prevention and mitigation mechanisms in place for the market.”

Sen. Aaron Reinhardt, R-Jenks, noted the heavy toll of weather-related losses on families. “We cannot legislate the weather we face in this state, the losses that occur and the continual rising cost in labor and materials that affect overall claims cost,” he said. “What we can do is continue to work on tort reform and put guardrails in place to stem the rising cost of litigation. We can also focus on consumer protection measures and ensure that we are holding insurance companies accountable and expediting the claims process and any issues that may arise.”

Key Components of the 2026 Legislative Package

Faster Response and Claims Handling

The proposals call for significantly shorter timelines across all stages of the claims process. Insurers would need to respond to OID complaints within 14 days, down from 20 days, and to policyholder questions within the same timeframe, halving the current requirement.

Claims must be acknowledged within 14 days, with detailed adjuster estimates issued within seven days once completed. Insurers would then have 30 days to accept or deny a claim, and final claim resolution deadlines would drop from 120 to 90 days. Interest of 10% would apply to late payments.

Strengthening Consumer Rights

The package introduces a statutory Homeowner Bill of Rights, outlining consumer entitlements and responsibilities during the claims process. Insurers would be required to provide discounts for homes constructed or upgraded to IBHS FORTIFIED standards, encouraging risk-reducing improvements.

Roof-age fairness rules are expanded, preventing insurers from refusing coverage solely because a roof is 15 years or older. Homeowners could seek independent inspections, and insurers would be prohibited from taking adverse action if the inspection confirms at least five years of useful lifespan. The proposals also restrict the use of aerial imagery as the sole justification for coverage decisions.

Building-code compliance requirements would be clarified to ensure insurers provide coverage consistent with applicable standards, regardless of local enforcement.

Improved Market Transparency

Insurers would be required to submit quarterly market stability statements, including data on non-renewals, withdrawals, and premium trends. The package also closes a loophole that previously allowed organisations outside the Department of Public Safety to use motor-violation data beyond the state’s three-year limit.

Mediation and Dispute Resolution Enhancements

The availability of Eagle Mediation would extend to residential, commercial-residential and auto claims. It could be requested by policyholders, first-party claimants, third-party claimants or assignees, but only after the state complaint process is completed and before litigation begins. Penalties would be imposed on insurers that fail to comply. The initiative aims to reduce costly legal disputes and indirectly limit premium increases.

Legal Reform

A proposal to codify that attorney fees may not be awarded to either party seeks to discourage frivolous claims and reduce litigation expenses. According to the department, lower legal costs could help stabilise insurance rates by limiting the expenses passed on to policyholders.

A Move Toward Long-Term Market Stability

Commissioner Mulready said the reforms are designed to support homeowners while strengthening the state’s insurance market. “These reforms make Oklahoma a leader in consumer-focused insurance regulation,” he said. “We have seen positive results of similar legislation around the country and by strengthening timelines, improving communication, expanding mediation options, and requiring fair treatment, we are helping Oklahomans recover faster and maintain access to coverage they can depend on.”

The proposals will be introduced during the 2026 legislative session beginning in February. OID plans to launch additional consumer education initiatives to help residents understand their expanded rights and protections.