The Secret Insurance Rate Making Process in Oklahoma An Analysis—July 22, 2025
In 2024, while homeowners insurance rates continued to dramatically rise in Oklahoma, insurance companies that charged those rates made record net profits:
- Progressive — $8.5 billion
- Zurich — $5.81 billion
- State Farm — $5.3 billion
- Travelers — $4.9 billion
- Allstate — $4.55 billion
- Liberty Mutual — $4.3 billion
- USAA — $3.9 billion
MYTH: Oklahoma has reasonable homeowners insurance rates in comparison with the rest of the nation.
FALSE: OKLAHOMA HOMEOWNERS PAY MORE FOR INSURANCE THAN ANYONE IN THE COUNTRY. OKLAHOMA HAS THE HIGHEST AVERAGE HOMEOWNERS PREMIUM IN THE NATION AT $6,133 PER YEAR, 2.2 TIMES THE NATIONAL AVERAGE OF $2,801. RATES HAVE CLIMBED 50.8 % IN OKLAHOMA SINCE 2019. www.lendingtree.com.
MYTH: Oklahoma has higher homeowners insurance rates than other states because we have more damaging hailstorms.
FALSE: FOUR OTHER STATES WITH THE SAME OR MORE HAILSTORMS OF ONE INCH OR MORE HAVE LOWER HOMEOWNERS RATES. THE TOP STATES WITH LARGE HAIL IN 2024 WERE TEXAS, COLORADO, ILLINOIS, OKLAHOMA, AND MISSOURI. www.Cotality.com
MYTH: Oklahoma’s Insurance Commissioner sets or controls insurance rates.
FALSE: THE INSURANCE COMMISSIONER HAS NO STATUTORY AUTHORITY TO INTERFERE WITH RATES CHARGED BY INSURANCE COMPANIES. www.Oklahomawatch.org, quoting Insurance Commissioner Glen Mulready, “OID [Oklahoma Insurance Department] has no statutory authority to set or approve homeowners rates except in certain, extraordinary circumstances.”
MYTH: Oklahoma’s Insurance Commissioner carefully scrutinizes rate filings made by insurance companies.
FALSE: OKLAHOMA DOES NOT EXAMINE RATES TO PROTECT CONSUMERS. OKLAHOMA DOES NOT HAVE A SINGLE ACTUARY TO CHECK THE TRUTHFULNESS OR REASONABLENESS OF THE ACTUARIAL REPORTS OF INSURANCE COMPANIES IN THEIR RATE FILINGS. NEIGHBORING STATES AUTOMATICALLY REVIEW EACH RATE FILING AND EMPLOY ACTUARIES TO CHECK THE NUMBERS. TEXAS HAS 18 ACTUARIES. TEXAS CLAIMS THAT IN FOUR YEARS, THEIR REVIEW HAS SAVED POLICYHOLDERS $131.7 MILLION. www.Oklahomawatch.org
MYTH: The insurance rate filing procedure in Oklahoma is open and transparent.
FALSE: THE RATE MAKING IS APPROVED BEHIND CLOSED DOORS WITH NO SUBSTANTIAL PUBLIC INPUT. IF THE INSURANCE COMMISSIONER HAS A MEETING TO DETERMINE IF A HEARING REGARDING A RATE FILING IS NECESSARY, NOTICE IS GIVEN ONLY TO THE INSURER AND ANY PERSON WHO FILES A WRITTEN REQUEST ONCE A YEAR TO BE NOTIFIED. 36 O.S. SEC. 901.4 (A).
THE ACTUARIAL REPORT FILED BY THE INSURANCE COMPANY IN A RATE FILING IS CONFIDENTIAL BY LAW AND NOT SUBJECT TO THE OKLAHOMA OPEN RECORDS ACT AND CANNOT BE SUBPOENAED OR USED IN A CIVIL ACTION. 36 O.S. SEC. 1126.
When an insurance company files a rate increase, there is no notice to the public or any other state official. The insurance company can begin charging the new rate the day of filing.
IN OKLAHOMA, INSURANCE COMPANIES REVIEW THEMSELVES.