Oklahoma regulators raise concerns on quake insurance rate hikes

[Judi Lynn]

Source: Reuters

Oklahoma regulators raise concerns on quake insurance rate hikes

By Heide Brandes
May 24, 2016

OKLAHOMA CITY (Reuters) - Oklahoma regulators grappling with a massive increase in small earthquakes in the state linked to growing oil and gas production said on Tuesday they were concerned with spiking rates for earthquake insurance coverage and diminishing competition among insurers.

At a public hearing on the rate hikes, Oklahoma Insurance Commission officials warned they may begin requiring companies to submit proposed rate hikes for prior Commission approval due to heavy market concentration, a proposal opposed by insurance industry representatives in attendance.

"We think that, at present in Oklahoma, the competition is not sufficient or adequately regulated," said Gordon Amini, the Commission's senior attorney.

Oklahoma, which used to have a couple of earthquakes above magnitude 3.0 a year prior to 2009, is now struck with two a day or more. Officials blame the increased seismic activity on oil and natural gas disposal wells.

Read more: https://www.yahoo.com/news/oklahoma-regulators-raise-concerns-quake-insurance-rate-hikes-202501733--finance.html?nhp=1

[ToxMarz]

1. Cue the local Conservative cry for taxpayer backed Socialist insurance from the Big Bad Guvmint.