Oklahoma Senator Calls for Reform of Insurance Industry
Journal Record Legislative Report (Oklahoma City, OK)
January 29, 2004


Although Republican legislators have argued that restrictions on "frivolous" lawsuits are needed to help reduce the cost of insurance, one state senator argued Wednesday that reform of the insurance industry would be a better approach.

"Insurance premiums and profits are what need to be capped, not payments to people who are truly injured," said Sen. Frank Shurden, D-Henryetta.

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"We have seen several studies in recent months that suggest the insurance companies and their lust for profits are a big reason for higher premiums."

According to The Foundation for Taxpayer and Consumer Rights, a recent study by the Insurance Services Office (ISO) and the National Association of Independent Insurers (NAII) showed that net income for the insurance industry increased by 320 percent during the first nine months of 2003 as premiums nationwide continued to rise.

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Shurden also said that a recent Americans for Insurance Reform study of medical liability insurance rates showed that malpractice insurance premiums were affected more by the overall performance of the economy and the losses of insurance companies' investments rather than by jury awards to plaintiffs in malpractice cases.

"Republican legislators and their cronies in the insurance industry need to stop using trial lawyers and injured people as scapegoats for rate hikes," Shurden said. "I'm not saying our legal system is perfect, but until we see less greed from the insurance industry, I don't think the Legislature should take the tort reform crowd seriously."

For a copy of the complete article, contact AIR.