For Immediate Release:
January 7, 2026
Economic Indicators Show Oklahoma’s Homeowners Insurance Market Is Competitive
By Oklahoma Insurance Commissioner Glen Mulready
Public discussion about Oklahoma’s homeowners insurance market has intensified in recent months, with some critics suggesting the market lacks competition. However, objective, well-established economic tools that are widely accepted by the Department of Justice, Federal Trade Commission, fellow regulators, and economists show that the Oklahoma homeowners insurance market is competitive. This isn’t determined by rhetoric or perception, and it doesn’t mean that premium costs aren’t rising or invalidate homeowners’ concerns about affordability, which is my top focus along with legislative leaders.
Two of the most commonly used measures of market concentration are the Herfindahl-Hirschman Index (HHI) and the Four-Firm Concentration Ratio (CR4). These tools provide a clear, data-driven way to assess whether a market is competitive or dominated by a small number of firms.
The Herfindahl-Hirschman Index, the primary benchmark for measuring market concentration, uses companies’ market shares to yield a single score. Markets with scores below 1500 are considered unconcentrated and competitive, while those above 2500 are highly concentrated and non-competitive. Oklahoma’s HHI score is 1362, indicating its homeowners insurance market is clearly competitive by this standard. Oklahoma’s score is below this threshold for at least the past five years. The HHI is relied upon by federal entities when evaluating mergers, acquisitions, and potential antitrust concerns.
Less reliable but often cited is the CR4, or Four-Firm Concentration Ratio, that measures the combined market share of the four largest firms in a given market. Scores 0-40% are considered low concentration. Scores 40-70% are considered medium concentration, and scores 70-100% are considered high concentration. Oklahoma’s CR4 score is 60%. Used alongside the HHI, it helps confirm whether competition is robust or limited.
When these objective economic tools are applied to Oklahoma’s homeowners insurance market, they show a market characterized by multiple active insurers and meaningful consumer choice. No single company—or small group of companies—controls an outsized share of the market. By the standards used nationally and internationally, this reflects a competitive marketplace.
Based on previous news stories, it is important for consumers to know these facts. Insurance market competition is not decided by individual opinions, but by transparent, repeatable economic analysis using metrics that are universally recognized by regulatory authorities.
As critical discussions about insurance affordability and availability continue, grounding the conversation in objective economic analysis—rather than speculation—will help ensure policy decisions are informed by facts rather than perception.