OID Holding Public Meeting To Investigate Rising Earthquake Insurance Cost

The State Insurance Commissioner ordered a public meeting to investigate the rising cost of earthquake insurance in Oklahoma.

John Doak said rates are up across the state - in some cases by 100-percent.

He said there has to be a valid financial basis for any rate increase, and a healthy competition that benefits consumers.

"I think it’s the right time for the Oklahoma Insurance Department. My lane of traffic is insurance, and we want to make sure the insurance policies in Oklahoma and the pricing in Oklahoma is competitive and it is effective,” Doak said.

The commissioner said he has concerns about the current competitiveness of earthquake insurance because:

• Recent filings have not substantiated the need for increased rates
• The prevalence of multi-line discounts makes it difficult for a consumer to switch carriers to get a lower price or a lower deductible on earthquake insurance
• 70 percent of earthquake insurance policies in Oklahoma are sold by just a few companies

The meeting is from 8:00 a.m. to 10:00 a.m. on May 24th in Oklahoma City at the Oklahoma Insurance Department, 3625 NW 56th Street, Suite 100.

During the hearing, Doak will consider:

• The number of insurers actively writing coverage
• Market share information
• Economic barriers that could prevent new carriers from entering the market
• Market concentration
• Whether long-term profitability for insurers in the market is reasonable
• The relationship between insurers’ cost and revenue

Anyone who wants to be heard at the meeting must notify the department in advance by emailing General Counsel Gordon Amini at Gordon.Amini@oid.ok.gov no later than May 17.

Comments will be limited to the issues of competition and pricing in the earthquake insurance market, a release says.