OKLAHOMA CITY — Oklahoma homeowners could soon have a new opportunity to weigh in on insurance rate increases before they take effect under a law that gives regulators greater oversight of certain filings.
The Oklahoma Insurance Department is preparing to implement a public hearing process authorized under House Bill 3781, legislation approved this year that shifts Oklahoma from a “use-and-file” system to a prior-review process for homeowners, dwelling fire and private passenger automobile insurance rates.
Under the previous system, insurers could implement rates and submit them to regulators afterward. The new law requires insurers to file proposed rates with the Insurance Department before they take effect, giving regulators additional review authority and creating opportunities for greater public transparency.
The department will post filings online and, in some cases, may hold public hearings that allow consumers and other interested parties to comment on proposed increases.
Supporters say the changes will provide policyholders with more insight into how rates are set and allow regulators to more closely examine whether proposed increases are justified.
The legislation arrives as many Oklahoma homeowners continue to grapple with rising insurance costs driven by severe weather losses, higher construction and repair expenses, and increasing reinsurance costs.
Insurance Commissioner Glen Mulready has said those market pressures have contributed to higher premiums across the state and have challenged insurers operating in Oklahoma’s weather-prone environment.
While the new process does not give regulators unlimited authority to set rates, it does add a layer of review that previously did not exist for many insurance filings.
Consumer advocates say the hearing process could provide homeowners with a greater voice in decisions that directly affect household budgets, while insurers argue that rates must reflect the financial risks associated with covering homes and vehicles in Oklahoma.
Source: Oklahoma Watch
