Commissioner John Doak is increasingly alarmed about competition within the earthquake insurance market as data revealed that four companies hold 55 percent of this market, according to an Oklahoma Insurance Department press release.
At a public meeting held on Tuesday, Commissioner Doak heard that insurers collected more than $76 million in earthquake insurance premiums while paying only $4.3 million in claims from 2010-2015. Additionally, the Insurance Department received 12 rate increase filings ranging from 4 percent to 300 percent since Aug. 2014
“My number one priority is to protect the citizens of Oklahoma,” said Doak. “Due to several factors, including market concentration and very low loss ratios, I believe the Oklahoma earthquake insurance market may not be competitive. If true, we must take action to protect consumers.”
The Insurance Department is hosting earthquake outreach events across the state, according to the press release. Future events are scheduled on May 31 in Perry, June 16 in Woodward and June 30 in Edmond.