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ICT's Weekly Legislative Roundup

Senate Business and Commerce Hears Bills on TDI Regulatory Structure

The Senate Business and Commerce Committee met Thursday, March 27, to hear six bills on ICT's priority list. Most notably, the committee discussed TDI's regulatory structure and considered Chairman Schwertner's SB 1642, which would replace the TDI commissioner with a three-member commission, and SB 1643, which would require prior approval for rate increases or decreases exceeding 10%. The meeting began with prepared remarks from TDI Commissioner Cassie Brown, who discussed the department's regulatory role and data collection.

ICT testified against both bills.

• SB 1642 (three-member TDI commission) – ICT Executive Director Albert Betts testified on behalf of ICT, drawing on his personal experience with the inefficiencies caused by multiple commissioners in the past. He also highlighted the improved efficiency achieved by consolidating to a single workers' compensation commissioner. The committee was reminded of the 1993 Sunset Advisory Commission report that pointed out inefficiencies in the three-member commission structure.

• SB 1643 (prior approval +/- 10%) – ICT, TCAIS, APCIA, and NAMIC testified in opposition, stressing that all rate filings under the file-and-use system undergo thorough review to ensure they are supported by necessary data. They emphasized that rates are based on actual and expected losses—particularly given Texas' significant insured losses in recent years—and that the file-and-use system helps maintain a competitive market. The committee discussed the proposed 10% "flex band" and raised questions about the number of rate filings an insurer could submit annually.

Chairman Schwertner and the committee considered addressing the regulatory structure through the Texas Sunset Advisory Commission’s review of TDI, with the possibility of moving that date up to 2027 from 2029. However, the chairman also argued that the committee's collective experience positions them well to handle this issue independently. ICT will continue to meet with members of the Business and Commerce Committee and the Senate on these important bills, particularly the need to maintain the file-and-use system.

Other Priority Bills Heard

• SB 1644 (Schwertner) – This is OPIC's biennial recommendation requiring insurers that use credit scores in underwriting or rating to rely on a credit report no more than 90 days old when issuing or renewing a policy. Additionally, insurers must review and update an insured's credit score at least every 36 months to adjust premiums accordingly. ICT testified "on" the bill and is working with the chair and OPIC to align it more closely with the national model.

• SB 458 (Schwertner) – ICT and other trade groups worked with Senator Schwertner’s office on appraisal bill language for personal auto and residential policies, resulting in a new committee substitute for SB 458. The substitute mandates appraisal provisions in specified policies, includes ICT’s suggested language making appraisals binding except in cases of fraud, accident, or material mistake, and grants TDI rulemaking authority over appraisal timelines, qualifications, and procedures. It also protects existing policy forms with appraisal provisions from requiring refiling under the new law. Notably, the substitute excludes fee-shifting proposals from appraisers, plaintiff attorneys, and repair shops and does not require mutual agreement to invoke appraisal, which ICT had proposed. While it does not include ICT’s proposal for mutual agreement on appraisal, it is a largely positive outcome given the chairman’s intent to pass legislation.

• SB 1791 (Middleton) – This bill mandates that personal auto policies include a provision requiring insurers to attempt to contact the named insured at least five times or until the insured responds within 45 days following a third-party liability claim. If the insurer is unable to communicate with the named insured, they must pay the claim and decline to renew the policy. ICT testified against the bill and also submitted written testimony to the committee.

• SB 1238 (Kolkhorst) – This bill prohibits insurers from discriminating against individuals based on marital status following the death of a spouse. Specifically, insurers cannot deny coverage, limit benefits, or charge different rates because an individual is widowed. ICT testified "on" the bill and is working with the author’s office on proposed changes.

Other Committee Hearings of Interest

The House Insurance Committee met on March 26 to hear two key bills: HB 2067 (Paul), the companion to SB 1006 (Middleton), which addresses insurer requirements for providing reasons for nonrenewals, declinations, and cancellations, and HB 2275 (Morgan), the companion to SB 455 (Middleton), which deals with surplus line arbitration. ICT testified on HB 2067, reinforcing previous Senate testimony by clarifying the distinctions between declinations, cancellations, and nonrenewals. ICT also urged the committee to consider delaying the bill's effective date and allowing electronic delivery of notices.

The Delivery of Government Efficiency (DOGE) Committee met March 28 to consider HB 149 (Capriglione), a revised version of his broader AI regulation bill, HB 1709. ICT testified "on" the bill and continues to work with the chairman on the potential to carve out a safe harbor for insurance.

Update on "Tying"

SB 213 (West), which prohibits the practice of "tying," passed the full Senate 30-0 on March 26. The bill was reconsidered March 27 to add a floor amendment. The amendment adds a new section, 551.252, clarifying that the subchapter applies to authorized insurers writing property and casualty insurance in Texas, including county mutual insurance companies, Lloyd’s plans, reciprocal or interinsurance exchanges, and farm mutual insurance companies. Additionally, it modifies Section 551.253 by designating it as subsection (a) and introduces a new subsection (b), which prohibits private actions against insurers or their agents for methods, acts, or practices described in this section. However, this prohibition does not limit the attorney general’s authority to bring actions under Subchapter E or F of Chapter 541.

ICT submitted written comments on TDI’s proposed tying rule, emphasizing that there is no general statutory prohibition against tying and raising concerns about TDI’s legal authority to adopt such a rule without explicit legislative authorization.

TDI Updates

 TDI adopts revisions to the workers' compensation classification system 

The Texas Commissioner of Insurance has adopted amendments to the NCCI Basic Manual for Workers’ Compensation. The changes update classifications and phraseologies to align with multistate standards and revise certain operations rules. The order follows NCCI’s filing Item 01-TX-2024.

The adoption order can be found here. See the NCCI Manual Rule Filings for 2024 webpage for the notice and filing.

ICT News and Updates

 ICT All-Member Call: Recording available in Member InfoHub 

On March 28, 2025, the Insurance Council of Texas held it's Q1 2025 All Member Call.  ICT staff discussed the 89th Legislative Session, regulatory changes, and legal updates that may impact the insurance market. Staff reviewed consumer campaigns, industry outreach, and upcoming ICT events with members. A recording of the call can be found by logging into the Member InfoHub.

Early Bird Registration

2025 ICT Property & Casualty Insurance Symposium

When: September 17-18, 2025

Where: Renaissance Austin Hotel, Austin, TX

The ICT Property & Casualty Insurance Symposium is your must-attend event for the latest legislative updates, emerging trends, and networking opportunities. Early Bird Registration is open — secure your discounted tickets!

2025 ICT Workers' Compensation Conference

When: September 15-16, 2025

Where: Renaissance Austin Hotel, Austin, TX

Join us at the 2025 ICT Workers' Comp Conference for expert insights on mental health, AI in claims, fraud prevention, and more. Early Bird Registration is open—don’t miss your chance to save on your tickets!

 ICT in the News: 

Collision repair and insurance industries strike agreement on Texas mandatory right to appraisal legislation

Repairer Driven News

 ICT in the News:

Home premiums may start leveling off

KCBD

 ICT in the News:

New bill In Austin would require approval for home insurer rate hikes

KTRH - Houston

As Texas lawmakers debate proposed home insurance reforms, the Insurance Council of Texas is actively working to dispel misconceptions about how insurance rates are approved and the potential negative effects of new regulations. Richard Johnson, spokesperson for the Insurance Council of Texas, emphasized that insurance rates are driven by multiple factors, including economic conditions and weather-related losses. The proposed legislation could unintentionally disrupt the insurance market and reduce competition, ultimately leading to higher costs for consumers.

• State Sen. Charles Schwertner has introduced bills that would require regulatory approval for insurance rate hikes over 10% and establish a commission to oversee the Texas Department of Insurance.

• The insurance industry argues that rate increases are necessary due to inflation, rising home values, and catastrophic weather events such as hurricanes, wildfires, and tornadoes.

• Texas has maintained a competitive insurance market, but industry experts warn that excessive regulation could drive insurers out of the state, reducing competition and raising rates.

• Similar policies in California led to a decline in insurance availability and higher costs, particularly after major wildfire losses.

• Consumers are encouraged to regularly shop for the best coverage and remain cautious about policies that restrict insurers’ ability to adjust rates in response to market conditions.

Industry News:

Home insurers would need approval to jack up rates under Texas Senate bill

Houston Chronicle

(Subscription Needed) - Texas lawmakers are debating major home insurance reforms to address rising premiums, including stricter oversight of rate increases and the Texas Department of Insurance. NOTE: The Insurance Council of Texas is actively involved in dispelling misconceptions about how insurance rates are approved in the state and the adverse impacts this legislation could have on the insurance market.

Key Points

• Senate Bill 1643 would require state approval for home insurance rate increases above 10%, aiming to slow sharp premium hikes.

• Texas currently operates under a file-and-use system, allowing insurers to raise rates without prior approval, unlike states such as California.

• A proposed three-member commission would replace the current single-commissioner model to provide greater oversight of the Texas Department of Insurance.

• Critics warn that insurers could exploit the 10% threshold by filing multiple smaller increases within a year.

• A separate House bill would require insurers to disclose why they drop or deny homeowners’ coverage, increasing transparency in the market.

Industry News:

Storms, wildfires and withdrawals: How E&S is filling the Texas insurance gap

Insurance Business

The excess and surplus (E&S) insurance market in Texas is expanding rapidly, driven by increasing catastrophic events and shifting risk appetites among national carriers. Industry leaders see opportunities for growth but caution that regulatory and market dynamics will shape the future of E&S coverage.

• The U.S. surplus lines market grew 19.2% in 2022, reaching $98.5 billion, with Texas as a key contributor.

• CEO Gordy Bunch of The Woodlands Financial Group (TWFG) attributes the E&S market’s expansion to rising catastrophes, including hurricanes, wildfires, and severe storms.

• As traditional carriers reduce capacity, E&S insurers, managing general agents (MGAs), and third-party administrators (TPAs) are stepping in to provide coverage.

• Bunch emphasizes that regulatory flexibility allows E&S insurers to adjust pricing and policy forms quickly, making them more adaptable in volatile markets.

• He warns that without rate adjustments, state-backed insurers like the Texas Windstorm Insurance Association could become the dominant market, undermining private competition.

Industry News:

At least 4 deaths reported after over a half year’s worth of rain forces water rescues in parts of South Texas

CNN

Severe flooding in South Texas’ Rio Grande Valley left abandoned vehicles, forced water rescues, and resulted in at least four deaths after nearly a year’s worth of rain fell in just two days. The storms triggered rare flash flood emergencies, with local officials warning of continued flood risks even as the rain subsides.

Key Points

• More than a foot of rain fell across Hidalgo, Willacy, and Cameron counties, with Harlingen receiving up to 21 inches—close to a 1-in-500-year event.
• At least four people died, including three in Hidalgo County and one in Reynosa, Mexico, while more than 690 rescues were reported.
• Local officials declared states of disaster, with emergency crews conducting hundreds of rescues in Alamo and Willacy County.
• The National Weather Service issued four flash flood emergencies, its most severe warning, urging residents to seek higher ground.
• Flood risks remain high as swollen 

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