The attorney general’s latest clash with Oklahoma’s insurance commissioner expands a broader fight over homeowners insurance costs as voters prepare to elect Mulready’s successor and Republicans compete for the governor’s office.
OKLAHOMA CITY — Attorney General Gentner Drummond accused Insurance Commissioner Glen Mulready on Monday of improperly delaying a hearing that could determine whether competition in Oklahoma’s homeowners insurance market is sufficient to protect consumers from rising rates.
The dispute is the latest front in Drummond’s broader effort to challenge Oklahoma’s homeowners insurance market and regulatory oversight, an issue that has gained increasing political attention as homeowners grapple with rising premiums and as Drummond campaigns for the Republican nomination for governor.
In a statement released Monday, Drummond said Mulready failed to comply with state regulations after the attorney general formally requested a hearing on April 17 to examine competition in Oklahoma’s homeowners’ insurance market.
According to correspondence released by the Attorney General’s Office, Drummond requested the hearing under state law, arguing his office could present evidence that a “reasonable degree of competition” does not exist and that Oklahoma consumers are being harmed by escalating premiums. He contends state administrative rules required the Insurance Department either to hold the hearing within 30 days or formally deny the request.
Instead, Mulready informed Drummond on May 20 that the department plans to conduct a hearing in September while maintaining its position that Oklahoma’s homeowners insurance market remains competitive, according to the correspondence.
“Such a delay directly violates state regulations and does nothing to help Oklahoma insurance consumers,” Drummond said. “It serves only to maintain the status quo where Oklahomans pay some of the highest homeowners’ insurance rates in the country.”
Drummond responded the following day by demanding the hearing be held no later than June 5 and warning that he would pursue legal remedies if the department failed to comply. In the letter, he argued the Insurance Department had effectively prejudged the outcome by repeatedly asserting that competition exists before conducting the hearing required to make that determination.
The disagreement arrives amid growing scrutiny of homeowners insurance costs in Oklahoma, where premiums have climbed sharply in recent years.
At stake is more than a procedural dispute. Oklahoma law requires regulators to determine whether a reasonable degree of competition exists in the homeowner insurance market. If competition is functioning properly, policymakers generally rely on market forces to restrain prices. If it is not, the finding could strengthen arguments for greater scrutiny of rates and insurer practices.
Mulready and Insurance Department officials have previously argued that Oklahoma’s homeowners insurance market remains competitive despite rising premiums and that factors such as severe weather losses, inflation and higher rebuilding costs continue to drive rates upward.
The Insurance Department’s planned hearing was the subject of recent OKPoliticsToday reporting examining how the process could give consumers, regulators and insurers an opportunity to publicly debate whether Oklahoma’s market is working as intended.
The issue has also become a central theme in the race to succeed Mulready, who cannot seek another term. Earlier this year, Republican candidate Bob Sullivan sought a similar hearing, arguing that Oklahoma homeowners deserved a public examination of whether competition in the insurance market is sufficient to protect consumers from rising premiums.
The Insurance Department denied Sullivan’s request, a decision Drummond referenced Monday while criticizing the agency’s handling of competition questions. In correspondence released by the Attorney General’s Office, Drummond argued the department effectively concluded the market was competitive without first conducting the hearing Sullivan had requested.
The dispute places Drummond at the center of a debate that has already reshaped the insurance commissioner race. Sullivan has built much of his campaign around the argument that consumers need a stronger watchdog and greater scrutiny of insurers, while other candidates have generally defended Oklahoma’s current regulatory framework.
The hearing fight also follows Drummond’s intervention in litigation involving State Farm and Oklahoma homeowners over disputed hail-damage claims. The attorney general has portrayed that effort as part of a broader push to protect insurance consumers. State Farm has challenged Drummond’s authority to intervene in the case, and the matter remains pending before the Oklahoma Supreme Court.
In his April request, Drummond argued that while many insurers are licensed to write homeowners policies in Oklahoma, a relatively small number control a substantial share of the market. He also cited insurer profitability and premium growth as factors warranting a formal examination of whether competition is effectively restraining rates.
“Oklahomans deserve an insurance commissioner who protects their interests,” Drummond said. “I will not stop fighting for Oklahoma insurance consumers.”
Mulready’s office had not publicly responded Monday to Drummond’s latest criticism.
