Key facts
- Oklahoma Attorney General Gentner Drummond alleges State Farm has a secret program to deny hail damage claims.
- Drummond plans to investigate Allstate next.
- Candidates for governor and insurance commissioner are criticizing the current commissioner for not acting on rising insurance rates.
- A hearing is scheduled for September to determine if Oklahoma's home insurance market is competitive.
- If deemed uncompetitive, regulators could gain new powers to scrutinize and reject rate increases.
Oklahoma's insurance market is facing scrutiny as state officials, including Attorney General Gentner Drummond, accuse major insurers of defrauding residents and manipulating rates. Drummond, who is running for governor, has alleged that State Farm, the state's largest home insurer, operates a secret internal program designed to deny legitimate claims for roof damage caused by hailstorms. He has also indicated that Allstate will be the next company to face scrutiny.
Chelsea Stallings, a representative for the National Association of Mutual Insurance Companies, argued that increased government regulation would not attract more insurance capital to the market. Instead, she suggested that curbing excessive lawsuits against insurers, strengthening building codes, and improving home resilience against extreme weather would be more effective in attracting insurers.