Oregon bill would require insurers to explain premium increases to policyholders

House members held a public hearing on House Bill 2563 on Feb. 11 that would require property and casualty insurers to provide clear, reasonable explanations to policyholders when a renewal premium increases.

The bill, sponsored for the Oregon Division of Financial Regulation (DFR), would require insurers to supply explanations on request for renewals effective Jan. 1, 2026, and to provide automatic notices for renewal increases of 10% or more beginning in 2027. The rules would apply to personal auto and homeowners policies and include a 20-day response deadline for insurers responding to written requests.

DFR Deputy Administrator Alex Chang told the committee the agency sees the measure as a consumer-protection response to frequent complaints. "We are here today to urge your support for House Bill 25 63, which is aimed at addressing one of the more common set of complaints we get at the division. Namely, my homeowners or auto insurance rates are going up. I can't get a straight answer as to why and what can I do about it?" Chang said. He said consumers often receive renewal notices that either omit reasons for a…