Oregon just rolled out a pair of new insurance regulations - one requiring insurers to explain premium hikes, the other creating a state-funded program to help affordable housing providers cover rising insurance costs, both effective April 1.
The Oregon Department of Consumer and Business Services filed both sets of regulations on March 26, 2026, after approving them the day prior. Together, they reflect the state's effort to address rising insurance costs and housing affordability from two directions - insurer accountability on one side, public subsidy on the other.
The first regulation, Permanent Administrative Order ID 2-2026, implements House Bill 2563 from the 2025 legislative session. It requires insurers to provide a written explanation for any premium increase on a personal auto, home, or dwelling policy when a policyholder submits a written request. The rules apply to any insurer whose combined written premium in qualifying lines reaches $1,000,000 or more in a given calendar year.
What counts as a meaningful explanation is tightly defined. A rating factor is considered to have "significantly contributed" to a premium increase only if it accounts for more than 2% of the current policy premium and ranks among the top four cost drivers on a dollar basis. Insurers must identify and explain between one and four of these factors. If no single factor clears that threshold, the insurer must still provide a personalized explanation covering all contributing factors. The one exception is where the increase stems entirely from changes the policyholder themselves initiated – in that case, the insurer can simply say so.
Every explanation must include the date it was issued, the insurer's name, address, and NAIC number, the policyholder's details, and instructions on how to reach the insurer with follow-up questions. The state has provided a sample format, though insurers can submit their own template for approval if it aligns with their existing communications.
On the reporting side, the rules introduce a biennial obligation starting April 30, 2028. Insurers must report, grouped by zip code and calendar year, the total number of renewal offers where premiums went up, how many policyholders asked for an explanation, and the percentage increase on each of those policies. The data will give Oregon regulators a granular look at where rates are climbing and how often consumers are pushing back.
For policyholders, the rules keep things simple. A written request needs to include their name, address, policy number, and policy type, and must clearly state they want an explanation for a premium increase at renewal. It can be mailed, emailed, hand-delivered, or submitted through an insurer's online portal.
The second regulation, Permanent Administrative Order ID 3-2026, takes a different approach. Rather than regulating insurers directly, it creates the Affordable Housing Premium Assistance Program under Senate Bill 829 (2025). The program channels state funds to help affordable housing providers and shelter operators cover their property and liability insurance costs.
Eligible applicants include public, private, and nonprofit entities that own or operate affordable housing as defined under ORS 197A.445, shelter locations receiving state or local government support, Project Turnkey sites funded through the Oregon Community Foundation, and navigation centers operating under the state's shelter infrastructure program.
The program prioritizes applicants in the most precarious financial positions. Entities where insurance costs eat up more than 20% of non-staff operating expenses, where operating reserves have dipped below three months, where mortgages are in arrears or forbearance, or where net operating losses are verifiable all move to the front of the line. Properties at high risk of defaulting on debt obligations, those providing more than 15% of shelter beds in their region, or those accounting for more than 5% of their county's total permanent supportive housing units also receive priority.
Payments are capped at 40% of total annual insurance premiums or $30,000 per entity, whichever is less. If demand exceeds available funding, the department can prorate payments, though nonprofits and entities in communities with thin affordable housing inventory get full-payment preference. After the initial round of disbursements, remaining funds can go to waitlisted applicants, new applicants in a second window, or as additional prorated payments to prior recipients.
The application process opens with a 60-day window from the program's launch date. Submissions during that period get first priority. Applicants must provide insurance policy declaration pages for both the current and prior year, proof of premium payments, a description of their housing or shelter stock including structure type and unit or bed count, geographic classification including proximity to wildfire risk zones, and a narrative about their efforts to preserve or grow their affordable housing inventory. For-profit entities must submit two years of audited financials and tax filings. Nonprofits need their most recent annual report filed with the Secretary of State and proof of IRS tax-exempt status. Every application requires a sworn attestation under penalty of perjury.
The department must report program outcomes annually to the Oregon Legislature, tracking everything from the number of assisted entities and housing units preserved to average payment size and administrative costs as a share of total spending.
Both orders draw their authority from ORS 731.244. The premium transparency rules implement ORS 742.075, while the assistance program operates under ORS 746.100, ORS 746.110, ORS 746.240, and Oregon Laws 2025, chapter 600.
For insurers operating in Oregon, the takeaway is straightforward: the state expects more accountability on rate increases, and it is willing to spend public money to keep affordable housing insured where the market alone is not getting it done. Whether other states follow Oregon's lead - particularly the premium subsidy model - is a question the industry will be watching closely.
