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​By Oklahoma Insurance Commissioner Glen Mulready
Homeowners rates are a big topic of discussion in Oklahoma right now, especially during severe weather season. At the Oklahoma Insurance Department (OID), we understand how important this issue is to so many. I want to reaffirm our commitment to Oklahomans, clarify a few points, and give more context to help consumers understand what’s driving rates. It’s not just about hail. The rising cost of coverage in our state is the result of several complex factors that shape the insurance market.
First, I want Oklahomans to know our top priority is you. We investigate complaints, enforce insurance laws, and ensure companies treat consumers fairly. We returned over $12 million to consumers in 2024 and answered over 16,000 assistance calls. We supported legislative changes like the Strengthen Oklahoma Homes Grant Program to help reduce long-term costs for Oklahomans through safer, more resilient construction. We take action to protect consumers when insurers act illegally or violate contracts and are always looking for innovative solutions to problems facing our state.
Now, let’s discuss the role of OID with rates. OID has no statutory authority to set or approve homeowners rates except in certain, extraordinary circumstances. Oklahoma is one of 38 states and territories that follow this model. Our job is to protect the consumers by ensuring insurers follow the law, treat policyholders fairly, maintain financial stability, and provide adequate market access. We step in only when competition breaks down or coverage becomes unavailable.
Next, I want to focus on what drives rates. It’s not just hail but a combination of factors. Oklahoma is a weather state that deals with high winds, tornadoes, wildfires, and flooding, in addition to hail. Other factors include inflation and increased costs of materials and labor. In 2023, on average, Oklahoma’s top 20 homeowners insurers paid out $129 in claims for every $100 of premium collected. While we saw an improvement in 2024, insurers still paid $97 in claims for every $100 of premium collected.
Finally, let’s talk about how competition impacts rates. A key component of any insurance market is choice for consumers, as competitive pressure helps to keep insurance rates in check. Oklahoma has over 100 licensed companies to write homeowners policies; over 50 are writing new policies, providing consumers with plenty of choices. This is also why it is so vital that you shop around for coverage if you are dissatisfied with your current coverage, as it fuels competition in the market for your business.
I understand Oklahomans are frustrated about rising insurance costs. I am, too. Our job at OID is to make sure consumers are treated fairly, promote a robust market, ensure insurers can pay claims when Oklahomans need them, and push for sustainable solutions that work. That is what you deserve. If you need assistance or have insurance questions, we’re here for you! Contact us at 800-522-0071 or oid.ok.gov.