Oklahoma insurance commissioner orders hearing on earthquake insurance

OKLAHOMA CITY (KOKH) — Oklahoma's insurance commissioner wants a hearing into a rise in earthquake insurance rates, his office announced.

A hearing will be held on May 24 and the public is invited.

"This is a proactive move to protect consumers," said commisioner John Doak in an e-mailed news release. "We've seen some rate increase filings up to 100 percent come through the office and we want to make sure we have a reasonably competitive market. There needs to be a valid financial basis for any rate increase and healthy competition that benefits consumers."

The hearing is to see if there is a "reasonable degree of competition" in the Oklahoma earthquake insurance market, the office said. Doak says he has concerns because recent filings for rate hikes have not "substantiated the need for increased rates", the "prevalence of multi-line discounts makes it difficult for a consumer to switch carriers to get a lower price or a lower deductible on earthquake insurance," and the fact that 70 percent of policies are sold by just a few companies.

The hearing is scheduled for May 24 from 8:00 a.m. to 10:00 a.m. at the Oklahoma Insurance Department, 3625 NW 56th St., Suite 100, Oklahoma City.

You must let the insurance department know if you'd like to speak.