Insurance Agents Decry Laster Rate Board Bill

Legislation introduced by Senator Charlie Laster (D-Shawnee) that would reinstate the State Board for Property & Casualty Rates will negatively impact Oklahoma insurance consumers, says the board chairman of the state’s largest property and casualty insurance agents’ association, the Independent Insurance Agents of Oklahoma (IIAO).

“Hopefully Senator Laster is simply misinformed regarding the significant benefit made to Oklahoma insurance consumers since the State Board for Property & Casualty Rates was disestablished,” Tony Caldwell, IIAO board chairman said.

“The truth is the abolishment of this cumbersome board has been very positive for Oklahoma insurance companies and consumers as evidenced by more companies coming to Oklahoma to do business, creating competition which ultimately benefits the insurance consumer.

“Senator Laster fails to mention the Property & Casualty Rate Board was always an obstacle to rates being adjusted up or down and since the disestablishment of the board, Oklahoma policy holders have seen an overall decrease in insurance rates for automobile and homeowner’s insurance. The members of IIAO believe that is a positive for Oklahoma.

“Senator Laster criticizes profits being made by insurance companies leading me to assume he would prefer to have insurance companies lose money and be unable to pay claims that are presented to them. 2006 was the first year in 25 years the property and casualty insurance industry made an underwriting profit in the United States. The industry paid nearly $260 billion in claim losses in 2007. In order to provide the benefits promised to policyholders it is critical insurance companies have an opportunity to operate their businesses at a profit. It is also critical the state of Oklahoma provide an environment that welcomes an industry which has a track record of helping grow economies. Senator Laster’s hidden agenda to reinstate the State Board for Property & Casualty Rates would be disastrous to the insurance industry and Oklahoma insurance consumer.”

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