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For more Texas-related P&C insurance information and news, visit the ICT website
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TDI Proposes Rule Amendments to Update Outdated Agency References
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The Texas Department of Insurance is proposing changes to 28 TAC §§1.301, 1.302, 1.1101, 1.1901 and 1.1904 to remove outdated references to the General Services Commission, which was abolished in 2001. The amendments update these references to reflect the agencies that now perform those functions. The proposal also eliminates a fee for record certification.
View the proposal for full text and comment instructions.
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DWC Webinar: Health Care Providers in Texas Workers’ Comp
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The Workers’ Compensation Research and Evaluation Group has released a new report analyzing income replacement rates and the characteristics of injured employees receiving the maximum allowed benefits. The report covers temporary, impairment, supplemental, lifetime, death, and burial benefits.
Want to learn more? Read the report snapshot on the TDI website.
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TWIA Board of Directors Considers Annual Rate Filing
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The TWIA Board of Directors held its quarterly meeting on August 5, 2025, in Galveston, where it considered the statutorily required annual rate filing for 2026 policies. The Board reviewed a recommendation from the TWIA Actuarial & Underwriting Committee to file a 0% rate increase for 2026. Under statute, any proposed rate increase must receive two-thirds approval from the Board and may not be considered if there has been a board vacancy lasting more than 60 days. A recently filled vacancy cleared the way for the Board to take action on rates.
The Board voted 7-1 to accept the recommendation of the Actuarial & Underwriting Committee that TWIA file a 0% rate increase for both residential and commercial policies. While all nine board members were present, one board member abstained from voting.
As a reminder, TWIA's 2025 Rate Adequacy Analysis found current rates to be inadequate by 3% for residential and 5% for commercial coverage—down significantly from last year's 38% and 45%. The reduction was largely attributed to legislation passed during the 89th Legislature, particularly HB 3689, which lowered TWIA's maximum probable loss benchmark from a 100-year to a 50-year probable maximum loss (PML) and significantly reduced reinsurance costs. Despite actuarial analyses showing rate inadequacies, TWIA has only implemented two five percent rate changes since 2017.
Ahead of the rate hearing, ICT submitted comments encouraging the Board to follow the findings and recommendations of its actuarial team by filing a 3% increase in residential rates and a 5% increase in commercial rates with TDI. We emphasized that TWIA should not disregard the actuarial analysis or the statutory framework that supports the need for rate action. Failing to act on this information not only undermines sound ratemaking principles but also increases the burden on policyholders across the state who ultimately help fund TWIA losses.
TWIA staff also provided an update on the implementation of HB 3689, which takes effect January 1, 2026. Key funding decisions will follow this timeline: the TWIA Board will propose a methodology in November 2025, receive TDI approval by February 1, determine the PML at its February meeting, finalize catastrophe bond adjustments by March 31, and review reinsurance costs in May ahead of the June 1, 2026 program start date.
The board materials can be found here. ICT members can read a full recap on the ICT Info Hub.
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TFPA Governing Committee Meets in Galveston
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The Texas FAIR Plan Association (TFPA) Governing Committee held its quarterly meeting on August 4, 2025, in Galveston. Committee members received updates on TFPA operations, including financial performance, policy counts, and exposure.
TFPA Governing Committee also discussed the ongoing review of proposed deductible changes in the 2025 rate filing, including the proposal to eliminate the 1% deductible—an item still under scrutiny by TDI. Ultimately, the Committee voted to revise the filing by splitting it into two parts: one that moves forward with the optional higher deductibles, which appear likely to be approved, and another that defers a final decision on the 1% deductible pending further analysis and discussion at a future meeting. TFPA staff also reported to the Governing Committee that the $60.1 million assessment filing, reflecting the actual 2024 year-end deficit, submitted to TDI for approval is still under review.
The meeting materials can be found here. ICT members can read a full recap on the ICT Info Hub.
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Gerald F. Ladner to Receive 2025
Raymond Mauk Leadership Award
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ICT is proud to announce that Gerald F. Ladner will be honored with the 2025 Raymond Mauk Leadership Award at the ICT Property & Casualty Insurance Symposium on Sept. 17 in Austin. A 44-year veteran of the insurance industry, Ladner is recognized for his leadership, public service, and policy expertise. He served on the ICT Board of Directors from 2021 to 2023 and as Vice Chair of the Texas Property and Casualty Insurance Guaranty Association (TPCIGA).
Join us as we celebrate Gerald to honor one of the industry’s most respected leaders, whose career has been defined by integrity, innovation, and service. Don’t miss the chance to be part of this special moment alongside peers, colleagues, and industry professionals from across Texas and beyond.
Register now for the 2025 ICT Symposium.
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A Year in Review: Explore ICT’s Latest Annual Report
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The Insurance Council of Texas has released its 2024–2025 Annual Report, highlighting a transformative year of advocacy, industry engagement, and public outreach. The report details key legislative efforts, regulatory updates, educational initiatives, and safety campaigns that shaped ICT’s work across Texas. Members and stakeholders are encouraged to explore the full report to see how ICT continues to support and strengthen the property and casualty insurance industry.
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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
🔹 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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ICT in the News:
Who will join next year's elite class of 100?
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Now in its 12th year, Insurance Business America’s Hot 100 highlights the most influential brokers, executives, and innovators shaping the commercial insurance industry. The Insurance Council of Texas proudly supports this initiative recognizing leadership and excellence across the field. Nominate a colleague, rising star, or yourself—self-nominations are encouraged. Don’t miss the chance to celebrate those making a difference in 2025. Entries close Friday, August 22. The final list will be published this December.
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Top Texas emergency official says he was sick and asleep as deadly floods hit
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A top emergency official in Kerr County was sick and off duty during a deadly flash flood that swept through Texas Hill Country over the Fourth of July weekend, killing at least 138 people. William B. Thomas, the county’s emergency management coordinator, testified before lawmakers for the first time Thursday, addressing questions about his absence. Residents and officials continue to debate whether more warnings or better systems could have made a difference.
Key Points:
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Thomas was ill and did not participate in key July 3 emergency calls, missing early storm coordination efforts.
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County leadership was largely unavailable during the crisis: Thomas was sick, the sheriff was asleep, and the county judge was out of town.
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The Guadalupe River rose to record levels early July 4, flooding low-lying communities and killing 27 people at Camp Mystic alone.
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Many residents reported receiving no local warnings before the flood, prompting calls for outdoor sirens and improved alert systems.
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Local and state officials are now exploring stronger communication tools, including sirens and better broadband access, ahead of future storms.
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As the floods hit, Kerrville officials’ messages show lack of information about what was coming
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Newly released emails and texts reveal a delayed and disjointed response by Kerrville city officials as catastrophic flash flooding struck the area over the Fourth of July holiday. While the National Weather Service issued early warnings, city leaders appeared slow to recognize the scale of the danger. The flood ultimately killed more than 100 people in Kerr County, sparking scrutiny at local and state levels.
Key Points:
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Early texts between city leaders focused on festival plans rather than flood risks, despite looming weather threats.
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Internal communications show officials struggled to grasp the scale of the unfolding disaster and its potential impact.
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Kerrville issued a local flood alert at 5:02 a.m., nearly four hours after the National Weather Service’s initial flash flood warning.
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The lack of coordination highlights gaps in local emergency preparedness and response, especially during overnight hours.
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Experts and lawmakers are calling for clearer communication systems, better training, and accountability for local emergency leaders.
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Tort Reform Gains Ground as Nuclear Verdicts Reshape Liability Landscape
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The U.S. liability litigation landscape is shifting rapidly as nuclear verdicts hit record highs and several states enact tort reforms to curb lawsuit abuse, according to Sedgwick’s 2025 liability litigation trends analysis. Verdicts topping $10 million rose sharply in 2024, while defense costs and attorney involvement soared. The report calls for a strategic overhaul of litigation management.
Key Points:
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Nuclear Verdict Explosion: In 2024, 135 verdicts exceeded $10 million (up 52%), totaling $31.3 billion—116% more than in 2023. Median verdicts hit $51 million.
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Reform Momentum: Georgia passed sweeping tort reforms in 2025; Florida saw a 30% drop in litigation and insurance rate cuts after two years of reform.
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Attorney Outreach Escalates: Within two weeks, 64% of general liability and 75% of auto claimants are represented by attorneys, often contacted within minutes of an incident.
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Rising Costs: Defense costs for injury lawsuits rose 6.5% in 2024. Verdicts over $100 million—“thermonuclear”—jumped 81.5% in frequency year-over-year.
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Strategic Imperatives: Sedgwick urges predictive modeling, early risk identification, jurisdictional analysis, and data-driven legal strategies to mitigate outsized verdict exposure.
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Insured losses from disasters jumped in first half
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Worldwide insured losses from natural disasters reached $80 billion in the first half of 2025, up from $64 billion during the same period in 2024, according to Munich Re America. This marks the second-highest first-half total on record and far exceeds 10- and 30-year averages. Meteorologists and industry analysts say the increasing losses reflect growing risks and exposure.
Key Points:
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Record-Setting Losses: The $80 billion total is second only to the first half of 2011, driven by Japan’s earthquake and tsunami.
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Costliest Disaster: January wildfires near Los Angeles caused $40 billion in insured losses—the most expensive event of the year so far.
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Weather-Driven Impact: Weather-related events accounted for 98% of insured losses; earthquakes made up just 2%.
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Above-Average Trend: The 10-year and 30-year first-half loss averages are $41 billion and $26 billion, respectively.
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Severe Storms Rising: Willis Towers Watson highlighted severe convective storms in the U.S. as a growing threat, now rivaling hurricane-related losses.
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Check out all things ICT!
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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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