Insurance commissioner details home‑hardening grants, explains drivers behind rising premiums

Oklahoma Insurance Commissioner John (last name Moretti in transcript) reported to the Appropriations and Budget Natural Resources Committee on agency accomplishments, regulatory changes and the start of a grant pilot to fortify homes against wind and hail.

Commissioner Moretti said the department will open applications for an initial pilot under the Strengthen Oklahoma Homes Act in early March and that the legislature set aside roughly $10,000,000 for the program. "We are about to launch that, basically March 1... March 3," Moretti said, describing a phased approach that focuses grants on areas with greater historical storm exposure to improve resilience and reduce future claims.

What the department told lawmakers

Captive insurance and national recognition: The commissioner highlighted growth in captive insurance business domiciled in Oklahoma and said the state won a Captive Domicile of the Year award. He said the department hosted national association meetings and expanded outreach to underserved communities, adding that licensing exams and study materials are now offered in Spanish.

Premium‑tax flows and markets: Moretti explained premium‑tax mechanics to the committee: Oklahoma collects a 2.25% premium tax on insurance policies and the department said 55% of those funds flow to public‑safety pensions (police and firefighter retirement). He described the current marketplace as a "hard market," with insurers raising rates because of elevated loss experience and replacement‑cost inflation; the department reported that filings received from major companies show an average proposed homeowners rate increase just over 11% (median about 10%). Moretti emphasized that Oklahoma is a competitive, "use‑and‑file" state and that the insurance department does not pre‑approve most homeowner rates in a competitive market.

Workers' compensation and residual market: The commissioner summarized a legislative shift that replaced CompSource with a residual market structure managed via vendor selection; the department said it selected NCCI as a vendor and that three carriers are participating in the residual market pool. He reported a recent 9% reduction in workers' comp loss costs.

Consumer tools and enforcement

Life insurance policy locator: The department highlighted a life‑insurance policy locator tool and said outreach using that tool has helped connect Oklahomans to over $165,000,000 in previously unclaimed death benefits.

PBM licensing and enforcement split: The department explained that pharmacy‑benefit‑manager (PBM) licensing remains with the insurance department while enforcement of PBM legislation was moved to the Attorney General’s office two years ago; fines and licensing revenues continue to be tracked in the department’s revolving fund.

Agency operations, building repair and accreditation

Moretti said the department is addressing long‑running water infiltration problems at its headquarters; contractors and the attorney general are involved in remediation and litigation. He estimated approximately $4,000,000 of the recent spending spike in department reports relates to building repairs and said staff continue to operate in a partly remote posture while restoration proceeds. The department also described investments in technology (legal case management, surplus‑lines tax collection improvements) and leadership training to address succession planning.

Legislators’ questions and committee context

Members pressed the commissioner about the causes of rate increases and whether external events, such as California wildfires, will push Oklahoma premiums higher. Moretti said catastrophic losses elsewhere put pressure on insurers’ national results, but the department’s filings indicate local homeowner rate filings average just over an 11% increase and that inflationary replacement costs (for example, roof replacement) materially affect premiums. On school insurance and affordability, Moretti said many small districts rely on pooled arrangements (OSIG) and there is no simple statewide fix: "We don't have an accessibility issue. We have an affordability issue," he said, explaining that market exits in other states followed heavy rate controls.

Ending

The commissioner asked legislators to use the department’s new legislator packet and QR‑enabled resources to route constituent complaints and noted the department’s outreach and consumer assistance programs, including Medicare marketplace counseling and the home‑hardening grant pilot coming in March.

"If I can ever help with anything, we answer questions, constituents... happy to help in any way we can," Moretti said at the close of the briefing.