Oklahoma Watch uncovers why homeowners' insurance rates are so high, commissioner responds

Yahoo

21-05-2025

OKLAHOMA CITY (KFOR) — Sky-high insurance rates affect nearly every homeowner in Oklahoma.
We've all heard the excuse that it's because of the hail, but Oklahoma Watch decided to look beyond that and discovered it may not be the case.
'It turns out that both Texas and Kansas have historically more hail than we do. Yet their insurance rates are lower than ours,' said JC Hallman, reporter for Oklahoma Watch.
A report from the National Weather Service from 2020 to 2024 shows Oklahoma had an average of 16.6 days of 2 inch hail. While Texas had more than double at 37.8 days.
Kansas had 21.4 days and Nebraska had 22.6 days.
Those numbers are what made Hallman start asking what's really driving up Oklahoma's insurance costs.
'It's a quirk in Oklahoma law,' said Hallman.
The Oklahoma Insurance Department (OID) will regulate rates if they go too low, but won't step in if they go up, assuming the free market will bring costs down.
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'Oklahomans wind up paying a lot more than they maybe need to and it allows the insurance companies to cover up losses in other states by charging Oklahomans more money,' said Hallman.
The OID is led by Glen Mulready.
'Glen Mulready actually has the power based on the law as it is that he could step in and simply decide that we do not have a competitive market and once he says we have a non competitive market, then he could just lower rates,' said Hallman.
News 4 asked Mulready if he has considered taking action.
'It all comes down to, do we have a competitive marketplace? And yes, we're getting complaints because premiums are up and people don't like that and I get that, but we have a very competitive marketplace,' said Hallman.
Oklahoma Watch reported that there was one instance a commissioner stepped in to lower rates with earthquake insurance.
'Now there were two companies writing earthquake coverage, so it was determined that is not a competitive market,' said Mulready.
Records show that the insurance industry was Mulready's top donor in thirteen out of fifteen years.
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'There's zero connection with that because there's nothing that can be done. We don't approve rates, I could see that if we approve rates and somehow I was doing a favor for a certain insurance company, but that doesn't take place because it can't take place,' said Mulready.
Mulready also told News 4 he never said it was just hail driving up the cost of insurance.
'Rates are up because of claims and inflation. You know, if a roof costs more to replace today than it did yesterday, your insurance premiums are going to reflect that because that's a direct connection to actual costs,' said Mulready.
News 4 asked if he's working with lawmakers to do something about the high prices.
'We are looking for solutions, there's no silver bullet,' said Mulready.
Last year the legislature passed the Strengthen Oklahoma Homes Act, which just launched in March.
Homeowners can apply for grants to use to fortify their homes, which can lead to lower premiums.
While Mulready believes Oklahoma has a competitive market, Hallman encourages you to share your concerns with the OID and push for change.
To read JC Hallman's full story, click here.
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