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ICT's Weekly Legislative Roundup
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We are just three weeks away from the first major end-of-session deadline. Monday, May 12, is the last day House committees can report out House bills and House joint resolutions. The actual window is even shorter for bills to be heard and voted out of committee, making this the first major checkpoint in determining which House bills are still in play.
Regulatory Reform Bills on Senate Intent Calendar
Two major regulatory reform bills by Senate Business and Commerce Chairman Charles Schwertner are eligible for Senate floor consideration as early as Tuesday, April 22:
Both bills are top priorities for ICT. We've developed a new one-pager, co-signed by industry trade associations, that outlines the industry's position on insurance rate setting and has been distributed to all Senate offices:
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Rates are driven by losses, not by a lack of regulation.
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Over the past decade, returns on net worth in Texas have been low or negative, making the state one of the least profitable for insurers.
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Texas already has strong regulatory oversight and robust market competition.
Neither bill has a House companion.
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House Insurance Committee
The House Insurance Committee met twice this week, once for a formal meeting to vote out pending bills and once to hear new bills.
On Thursday, April 17, the committee heard two bills on our priority watch list:
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House Bill 4877 (Paul) – ICT initiative updating the Texas Property and Casualty Insurance Guaranty Association (TPCIGA) statute.
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House Bill 4268 (Morgan) – Requires coverage for withheld depreciation within two years and would limit the classification of depreciation as a defense cost.
The following bills of interest were voted out at the April 16 formal meeting:
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House Bill 3021 (Smithee) – Implements the Office of Public Insurance Counsel’s biennial recommendation on credit score updates for underwriting and rating. The committee substitute voted out aligns with the Senate version. ICT continues to work to address our remaining concern about how a policyholder receives their rights under this bill.
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House Bill 4392 (Morgan), Committee Substitute House Bill 1809 (Hernandez) – Prohibit insurers from denying coverage, limiting benefits or charging different rates because an individual is widowed. HB 1809 was substituted so that the language matches HB 4392, which is the companion to Senate Bill 1238 by Sen. Kolkhorst, referred to the House Insurance Committee yesterday. ICT continues to work with the authors to refine the language.
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House Bill 946 (Garcia-Hernandez) – Prohibits oral release in personal auto claims. ICT opposed this bill. As a reminder, this bill has been filed in multiple sessions and has previously passed the House but died in the Senate. There is no Senate companion.
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House Bill 3658 (Morgan) – Adds continuing education requirements for insurance adjusters relating to building codes.
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House Bill 3388 (Paul) – Provides for group property and casualty policies.
Bills Heard in Other Committees
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House Bill 3344 (Curry) – Roofing contractor licensing. Heard in the House Trade, Workforce and Economic Development Committee on April 15. The bill would establish licensing requirements for roofing contractors in Texas. ICT registered in support. The bill was left pending.
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House Bill 2054 (King) – Volunteer fire department funding and insurer assessments. Heard in the House Appropriations Committee on April 15, HB 2054 is the House companion to Senate Bill 868 (Sparks), which has already passed the Senate. A committee substitute identical to SB 868 was laid out. The substitute removes the original unlimited assessment on insurers and adds a requirement that 10% of VFD funds go to high-risk wildfire areas. ICT testified "on" the bill, noting that our primary concern (the unlimited assessment) had been addressed in the substitute language. The bill was left pending.
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Senator Mayes Middleton Announces AG Run
Texas state Sen. Mayes Middleton, a Republican from Galveston, has announced his candidacy for Texas attorney general in the upcoming election. Middleton has been a vocal figure on issues regarding the Texas Windstorm Insurance Association. This announcement comes as current Attorney General Ken Paxton has declared his intention to challenge U.S. Sen. John Cornyn in the 2026 Republican primary.
Read More
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Join us in Austin for the 2025 ICT Property & Casualty Insurance Symposium
📅 September 17–18, 2025 | 🏨 Renaissance Austin Hotel
Texas’ P&C insurance market is changing fast—this is your chance to stay ahead. Don’t miss two packed days of insight, networking, and expert analysis.
Highlights include:
🔹 2025 Legislative Recap – What passed, what changed, and how it affects you
🔹 Litigation Reform – Tackling excessive lawsuits and market impacts
🔹 State of the Market – Trends, shifts, and what’s next for P&C
🔹 Wildfire Risk in Texas – Are we headed down California’s path?
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2025 ICT Workers' Compensation Conference
📅 September 16–17, 2025 | 📍 Austin, TX
🎟️ Early Bird Registration Open – Ends May 31!
Join us for two dynamic days of insight and innovation as we dive into the future of workers’ comp in Texas.
Highlights include:
⚖️ Regulatory Recap – What the latest Texas legislation means for WC
🤖 AI in WC – Real-world tech transforming claims, safety & care
🧠 Total Worker Health – Building safer, healthier, more resilient teams
🩺 Telemedicine Trends – What's next for care delivery in WC
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ICT In the News:
Texas was once affordable. After hail and hurricanes, not anymore.
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Rich Johnson of the Insurance Council of Texas participated in a recent interview exploring the challenges Texas homeowners face as property insurance premiums rise across the state. Johnson warned that proposed rate caps could disrupt the market and reduce coverage availability, ultimately hurting consumers. His insights come as Texas grapples with a surge in natural disasters, rising costs, and mounting pressure on both insurers and policyholders.
Key Points:
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Increasing premiums: Many Texas homeowners are seeing dramatic increases in home insurance costs, with some facing quotes as high as $10,000–$15,000 annually—even in areas not historically prone to flooding or severe weather.
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Fewer options, higher risks: Major insurers are limiting coverage, pulling out of risk-prone areas, or offering expensive policies, leading many residents to turn to state-backed plans or reduce their coverage.
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Market remains competitive—but stressed: While state regulators maintain Texas has a healthy insurance market, experts argue that most available options are either unaffordable or offer minimal protection.
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Policyholder strain: Homeowners are cutting personal expenses, reconsidering retirement plans, or leaving the state as insurance costs outpace inflation and affordability.
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Legislative debate intensifies: Lawmakers are weighing measures like state grants and stricter rate increase oversight. Rich Johnson cautioned that such policies—if not actuarially sound—could drive insurers out of the market, mirroring issues seen in other states.
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ICT In the News:
Navigating insurance after the Austin house explosion
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Rich Johnson with the Insurance Council of Texas joined KXAN to discuss the insurance implications following a house explosion in north Austin, which caused significant damage to nearby homes. While the cause is still under investigation, Johnson emphasized that the claims process for affected neighbors will follow standard procedures.
Key Points:
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Rich Johnson explained that, as with storm damage, your own insurance typically covers damage to your property—even if another property caused it—unless negligence is proven.
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The exploded home had recently passed its final inspection and received a certificate of occupancy on March 28.
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Coverage for the destroyed home depends on the timing of when the insurance policy was purchased.
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Affected residents are advised not to begin repairs until after insurance adjusters have assessed the damage.
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Neighbors like Ryan Leer are navigating the claims process with patience and a focus on supporting those most impacted.
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Industry News:
Insurers to face millions in losses following severe storms in Texas
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Severe storms that swept from Texas through the southeastern U.S. between April 2 and April 7 are expected to cost U.S. insurers several hundred million dollars, according to AM Best and data from Aon. The storms brought widespread tornadoes, hail, wind damage, and flooding, affecting multiple states and prompting disaster response efforts.
Key Points:
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Storm Impact: Nearly 1,500 weather events were recorded, including approximately 128 tornadoes—33 of which were EF-2 or stronger—causing significant damage in states like Tennessee and Kentucky.
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Major Damage Sites: An EF-3 tornado in Selmer, Tennessee, damaged or destroyed over 330 structures; flooding in Frankfort, Kentucky, impacted historic sites, including the Buffalo Trace distillery.
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Widespread Flooding: Flooding extended from Texas to Ohio, with some areas still inaccessible, meaning total loss estimates could rise.
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Texas Response: Governor Greg Abbott initiated damage assessments for federal disaster aid, and the USDA activated programs to assist affected agricultural producers, including livestock loss support.
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Insurance Action: To bolster future resilience, the Texas Windstorm Insurance Association is seeking $375 million through a new catastrophe bond, Bluebonnet Re 2025-1, to expand reinsurance coverage.
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Industry News:
Aon reports record $38bn in Q1 insured catastrophe losses
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In the first quarter of 2025, global natural disasters caused an estimated $83 billion in economic losses, according to Aon’s latest report. The vast majority of these losses stemmed from events in the United States, particularly devastating wildfires in California.
Key Points:
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California wildfires led to $38 billion in insured losses, accounting for 71% of total insured losses worldwide in Q1 2025.
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Total global economic losses hit $83 billion, far surpassing the 21st century Q1 average of $61 billion and up from $54 billion in Q1 2024.
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US disasters made up $71 billion of the total, marking the country's highest first-quarter loss since 1994 and well above its $12 billion long-term Q1 average.
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Insured losses globally reached over $53 billion, making it the second-highest Q1 insured loss on record, with a reduced insurance protection gap of 36%.
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Fatalities from disasters rose sharply to over 6,000, largely due to a deadly March earthquake in Myanmar, which accounted for 88% of the deaths.
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Check out all things ICT!
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ICT Sponsors 2025 Capitol Crawfish Boil
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On April 14, ICT was a platinum sponsor of the 2025 Capitol Crawfish Boil, hosted by the Texas Chemistry Council. The event was spearheaded by House Insurance Chair Jay Dean, R-Longview, and attended by other state officials, House members, and various industry group representatives. ICT’s Albert Betts, Jon Schnautz and Angie Cervantes represented ICT at the crawfish boil, along with ICT legal counsel Jay Thompson.
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The Insurance Council of Texas (ICT) is on the lookout for knowledgeable and engaging speakers for our 2025 events! We are looking for experts to discuss industry trends at our upcoming gatherings, including:
- Quarterly ICT Webinar Series
- Workers' Comp Conference: September 15-16, 2025
- P&C Insurance Symposium: September 17-18, 2025, in Austin, TX
We’re seeking speakers to cover critical industry trends, topics such as:
- Emerging topics and innovations
- Legal developments affecting insurance
- AI and technology: challenges and opportunities
- Resiliency strategies for businesses and communities
- Insights on the future of the insurance industry
If you have suggested topics, would like to request a speaker or would like to present at one of ICT's events, click here to let us know.
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