The Oklahoma homeowners insurance marketplace has now lost its fifth company this year.
As the threat of severe weather approached the state from the Kansas boarder yet again, the Oklahoma homeowners insurance industry received news that yet another insurer has decided not to continue selling or renewing policies there.
This is not the first time that this type of insurance news has been made within the state this year. In fact, it is the fifth announcement of its kind since the start of 2012. It appears that the state is undergoing too many natural disasters that are causing losses that are making insurers feel that it no longer makes good financial sense to remain within the state. The expenses are becoming too great, and it is threatening the ability of those companies to operate there, risking their ability to make payments on the claims being made.
According to the insurance commissioner of the state, John Doak, “We catch it all, wildfires, hail storms, tornadoes, flooding, earthquakes.” There is truly a broad spectrum of high risk for its residents. He explained that though there have been five companies that have left this year, they still represent only a small share of the total market in the state.
The Oklahoma homeowners insurance company in question is the GHS Property and Casualty Insurance Company.
It also announced its intentions that, starting on August 1, 2012, it will cease the sale of new auto insurance policies, and that it will no longer be renewing the existing policies after that point.
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Doak stated that “We would rather them pull out now rather than leave consumers and homeowners with claims and insolvencies that they cannot pay after a major catastrophe. So you know it is a business decision on their side.”
In terms of the market share in the state, GHS Property and Casualty Insurance represented less than 1 percent of all of the policies. This announcement will be effecting approximately 6,500 individuals with personal auto insurance policies within that state. There remains more than 850 other Oklahoma homeowners insurance companies that are continuing to write policies for the coverage of both homes and vehicles.