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Oklahoma’s insurance commissioner has reversed a previous denial and announced a public hearing this September to examine competition in the homeowners insurance market — a development that could give residents a rare chance to press officials about rising premiums just months before the commissioner leaves office. The hearing follows recent changes to state law that alter how rate increases are reviewed and whether regulators may challenge insurers’ filings.
Commissioner Glen Mulready initially refused a request for a hearing earlier this year, saying state law barred his office from intervening in filed rates. On May 20 he called the same type of proceeding himself, setting the stage for a potentially pivotal review of whether Oklahoma’s market is truly competitive.
What the hearing could change
Under Oklahoma statute, insurers’ rates are generally untouchable if the market is deemed competitive. A formal designation that the market is non-competitive opens the door for regulators to scrutinize and, if warranted, challenge those rates. That designation requires a hearing — the very mechanism now scheduled for September.
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But the framework is ambiguous. The law does not prescribe when a hearing must be held, and the final call on competitiveness rests with the insurance commissioner. Mulready has said he believes the market is competitive even as he schedules a public proceeding that may test that claim.
Recent legal changes that matter
Earlier this year the legislature and governor approved House Bill 3781, which alters the ground rules for homeowners rate filings. The new law moves Oklahoma away from an insurer-friendly system and toward a model that demands quicker regulatory review and leaves open the ability to contest excessive increases.
- From use-and-file to file-and-use: Insurers can no longer automatically implement increases without initial regulatory review; actuaries must examine filings within a set time frame.
- Removes blanket prohibition on challenges: The statute’s previous restriction on contesting rates — in effect whether or not a hearing had been held — was repealed.
- Effective date: The law takes effect on July 1, 2027, giving insurers and regulators more than a year to prepare and, potentially, litigate its implementation.
Consumer advocates praised the statutory shift as meaningful but cautioned the details could blunt its impact. J. Robert Hunter, a veteran consumer advocate, warned the clock for regulatory review is tight and the Oklahoma Insurance Department lacks the in-house actuarial staff used by larger states to perform rapid, rigorous reviews.
Specifically, HB 3781 calls for actuarial scrutiny within a 30-day window after a rate filing. Advocates say that timeframe may be impractically short for assembling evidence and pursuing a challenge, especially without dedicated actuarial resources.
How the process unfolded this year
In late February, Bob Sullivan, a candidate in the race to replace Mulready, formally asked the department to hold a hearing on market competitiveness and said policyholders he represents intended to participate. By statute, the department was required to respond within 30 days.
Mulready missed that deadline and initially denied the request, saying the petitioner had not met the legal burden needed to rebut a presumption of competitiveness. Less than six weeks later, Mulready announced he would convene a hearing in September. He declined interview requests about the reversal.
The timing is politically sensitive: Mulready has roughly six months left in his eight-year term, and the outcome of any hearing would ultimately be his decision. That has drawn criticism from some consumer advocates who contend calling a hearing while publicly asserting a competitive market undercuts the proceeding’s impartiality.
Responses and stakes for homeowners
The state’s insurance debate has widened beyond actuarial technicalities into public frustration. Investigations last year raised questions about the claim that hail losses alone explain Oklahoma’s high premiums, and reporting suggested market concentration may give a handful of firms outsized influence.
Plaintiffs attorneys who have secured settlements for homeowners contend they are protecting consumers, not driving up costs. Jeff Marr, an Oklahoma City attorney, said attributing rising premiums to litigation misreads where the cost pressures originate and effectively shifts insurer responsibility onto policyholders.
Mulready’s recent statement also criticized litigation as a driver of higher costs, a stance at odds with polling showing strong public support for policyholders’ rights to sue insurers.
What to watch next
The hearing date has not been finalized and the list of parties or an independent hearing officer has not been released. If the public is permitted to testify, the September proceeding may be the last direct opportunity for homeowners to present their concerns to Mulready before he exits office.
Key near-term items to follow:
- Formal scheduling and notice of the September hearing, including participation rules.
- Whether the Insurance Department secures outside actuarial expertise to meet the new 30-day review requirement.
- Any legal challenges to HB 3781’s implementation before the law takes effect on July 1, 2027.
For now, Oklahoma homeowners and policymakers will be watching to see whether the public hearing leads to substantive findings about market competition — and whether those findings translate into an enforceable check on rising insurance costs.
