Freak winter ice storms, floods, tornadoes and wildfires across Oklahoma kept insurance adjusters and agents busy.

There were 63 major federal disaster declarations issued nationwide in 2007, according to the Federal Emergency Management Agency. The number of declarations for 2007 was up from 52 a year earlier and from 48 in 2005, FEMA said.

In Oklahoma, two major ice storms in one calendar year, along with other catastrophes could have an impact on insurance rates, said Kim Holland, state Insurance Commissioner. Insured claims since through the first half of the year are estimated at $185 million. Companies racked losses in the tens of millions of dollars over the past year-and-a-half.

“A rate increase might be indicated,” Holland said. Despite property losses from the many wildfires, floods, tornadoes and ice storms, Oklahoma’s insurance sector remains a competitive market. But rate hikes might not come from catastrophic losses as from the downturn in the equity markets.

The commissioner has made 10 emergency declarations since the start of the year, more than twice a year ago when Holland made four emergency declarations.

On the state level this year, Holland has made four disaster declarations and three additional fire management assistance declarations have been made.

Holland made seven emergency declarations in 2007 involving storms, flooding, tornadoes and ice storms.

Insurers cover losses through investments of policyholder dollars and those investments can impact underwriter products, Holland said.

“The combination of losses and the depressed market could cause a rate hike,” she said. “I would not be surprised to see rates go up.”

The insurance sector in the state makes a substantial impact on the economy. There are 49 property and casualty companies operating in the state and 28 life and health insurance providers, according to the Insurance Information Institute.

Nearly 30,000 Oklahomans earn a living in the insurance industry where there are 99,000 producers and adjusters in the entire U.S. It generates $11.8 billion in premiums and $194 million in tax revenues for the state, contributing to the General Fund and pension plans of firefighters, police and highway patrol officers. After the tax commission, the insurance industry is the largest contributor to the General Fund, which provides services, and support to communities across Oklahoma.

Insurance companies can raise their rates without submitting them to the Insurance Commission, Holland said. “We cannot disapprove their rates.”

But insurers know consumers are price sensitive, Holland added.

“Their profitability is based in retention. They are sensitive to competition. Policyholders have a low tolerance to price increases,” Holland said.

Last year Oklahoma ranked sixth in the nation for the number of fires, according to the III. The state lost 69,907 acres in 3,519 fires. California topped the U.S. with 9,093 fires destroying more than 1 million acres. Georgia, North Carolina, Florida and South Carolina rounded out the top five.

Destructive events such as those make an impact on catastrophe risk and insurance rates as they draw down insurance company’s reserves.

Hurricane Katrina jolted the insurance sector because for the first time, executives and regulators realized there was the possibility that a catastrophic loss of property could occur that would exceed reserves, Holland said. Reserves are assets kept in cash as a provision for meeting all demands.