Skyrocketing homeowners’ insurance premiums are driving Oklahoma homeowners into crisis.
Over the past year alone, insurance premiums jumped 8.6%, a continuation of a distressing trend that has pushed cumulative increases to 50.8% since 2019.
That’s an annual average increase of 8.47% — a rate that far exceeds the growth of wages, Social Security adjustments or household budgets.
According to moneygeek.com, the average premium for a $250,000 home in Oklahoma is $6,000 to $7,000. Nationwide, a $300,000 dwelling coverage policy costs around $2,466 annually, making Oklahoma’s rates nearly three times higher.
Oklahoma families, especially those on fixed incomes, are being crushed under the weight of persistent rate hikes.
An article by Oklahoma Watch highlights the issue of skyrocketing premiums not just being a budgeting inconvenience. Rising insurance costs have become a key driver of mortgage stress, and while Oklahoma-specific foreclosure data tied to insurance hikes is scarce, experts warn that people on Social Security or tight budgets are particularly vulnerable.
Home ownership, long seen as a pillar of stability, is at risk for many Oklahomans, and that should alert lawmakers on both sides of the aisle.
Although Oklahomans have been told by Insurance Commissioner Glen Mulready that the big issue is hail or other related issues, that’s just not true. In fact, Oklahoma’s Tornado Alley neighbors, Texas and Kansas, face similar or worse weather conditions but enjoy lower average insurance rates.
Why? Because those states enforce regulatory oversight.
In Texas and Kansas, state insurance departments employ teams of actuaries to rigorously review every rate filing from insurance companies. In Texas, 18 actuaries review filings, resulting in rejected or amended rates in the majority of cases—saving consumers over $131 million since 2021. Kansas uses consulting actuaries to ensure rates are fair and justifiable.
Oklahoma, by glaring contrast, has only one chief actuary, whose role is largely limited to monitoring the financial solvency of insurers, not protecting consumers from unfair pricing. Even more disturbing, Oklahoma law prevents the Insurance Department from intervening on rate filings unless the market is declared “noncompetitive”—a threshold that is murky and almost never invoked.
In the last couple of sessions, lawmakers addressed a few initiatives regarding the insurance industry, but Oklahoma consumers need stronger protections.
The solution is clear, and lawmakers must act now. First, the Legislature must revise the statutes that limit regulatory authority, empowering the Insurance Department to conduct independent, mandatory actuarial reviews of all rate filings. Without this oversight, insurers are essentially allowed to regulate themselves.
Second, Oklahoma must invest in a robust actuarial team within the Insurance Department, similar to the models in Texas and Kansas. A team of dedicated experts can ensure that rate increases are based on actual risk data, not corporate profit margins.
The Oklahoma Watch article quoted former insurance officials like Kim Holland and Kevin Easley sounding the alarm, saying that the system can be fixed if the political will exists. As Easley said, “If the model isn’t working, we should be changing the model.”
Oklahoma families can’t afford more delay. It’s time for lawmakers to act decisively to protect homeowners from an insurance system that has spiraled out of control.
Cindy Allen 