The Oklahoma Insurance Commissioner is leaning toward the opinion that the state’s earthquake insurance market is not competitive. During a hearing on Tuesday, it was revealed that four insurance companies have more than half of Oklahoma’s insurance policies.
“My number one priority is to protect the citizens of Oklahoma,” said Commissioner John Doak. “Due to several factors, including market concentration and very low loss ratios, I believe the Oklahoma earthquake insurance market may not be competitive. If true, we must take action to protect consumers.”
Doak is holding a series of hearings to determine if he should declare the earthquake insurance market “not competitive.” If that determination is made, insurance companies would have to get consent from the Insurance Department before putting rate increases into place. The Department has received a dozen rate increase filings ranging from four percent to 300 percent since August of 2014. According to Department data, 119 companies write earthquake insurance in Oklahoma.
Doak is expected to announce his decision on the status of Oklahoma’s earthquake insurance market in the next 30 days. The Insurance Department has three more outreach events scheduled in Perry, Woodward and Edmond.
