OKLAHOMA CITY – Oklahoma House Democratic Floor Leader Andy Fugate, D-Del City, announced the completion on Tuesday, October 7, of the second half of a joint legislative study with Senate Democratic Leader Julia Kirt, D-Oklahoma City, examining the sharp rise in homeowner insurance rates across Oklahoma.
The second session focused on two critical areas: gaps in Oklahoma’s insurance oversight system and the real world impact on Oklahoma families, with particular attention to seniors and Oklahomans on fixed incomes.
“Oklahoma’s law makes it nearly impossible to challenge or even review proposed rates,” said Fugate. “The problem is exacerbated by the reality that just four insurers control over 60 percent of the homeowner insurance market. Without oversight, insurers are free to charge all the customer can bear.”
Leader Kirt echoed these concerns.
“It's clear from this study that we don't have the laws and capacity in place to adequately review rates and ensure they're fair for Oklahomans,” said Leader Kirt. “That has to change.”
Fugate emphasized concerns with the state’s reliance on the Herfindahl Hirschman Index (HHI) as the sole measure of market competitiveness. He pointed to the Four Firm Concentration Ratio (FFCR) as an additional, widely used metric that shows a different picture: when the top four firms hold more than 60 percent of market share, the market is dominated by a small number of large companies rather than a truly competitive environment.
“For all but one year in the last two decades, Oklahoma has had an insurance oligopoly and not a truly competitive market,” Fugate said.
Key findings from the second session include:
- Structural barriers in current law that limit meaningful review and public challenge of proposed rate increases.
- High market concentration among a handful of insurers that reduces competitive pressure to lower premiums.
- Disproportionate impacts on fixed income households and senior citizens who face difficult choices between paying rising premiums and maintaining other basic needs.
“Thank you to Leader Kirt for continuing this research using Senate resources,” Fugate said. “We have an insurance affordability crisis that must be solved.”
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