Starting September 1, 2026, insurers in Oregon will need to do something new when raising rates on certain policy renewals: explain themselves clearly, and in writing.
Under House Bill 2563, passed by the Oregon Legislature, insurers renewing homeowners or personal auto policies must provide a "clear and reasonable" written explanation for any premium increase, if the policyholder asks.
The explanation must identify the top factors (up to four) that contributed most to the increase and must be written in plain, non-technical language that an average policyholder can understand.
It’s part of a broader push by the state’s Department of Consumer and Business Services to increase transparency and consumer understanding in insurance practices. The law applies only to renewals of existing policies and not to new applications or policies like life, health, or umbrella insurance.
What counts as a contributing factor? The law lists examples, including changes in location, driving record, claims history, credit-based scores, and more. Insurers have to respond within 20 days of receiving a written request, and they’ll need to flag this option in both their renewal offers and first premium invoices post-renewal.
Importantly, the law gives regulators room to fine-tune these requirements through future rulemaking, including how the written responses must look and what data insurers will have to report over time.
The move reflects growing concern among regulators and consumers about rising premiums and about the lack of clarity around why they go up. Oregon isn’t the only state examining how insurers communicate with policyholders, but this new law is among the most detailed in spelling out transparency obligations.
