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TWIA and FAIR Plan Provide Final Hurricane Beryl Bi-Weekly Claim Updates
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The Texas Windstorm Insurance Association (TWIA) and Texas FAIR Plan Association have announced their final bi-weekly claims update following Hurricane Beryl. Claims have been arriving at a slower rate, with TWIA and FAIR Plan reporting a total of 41,216 claims as of October 25—31,383 for TWIA and 9,833 for FAIR Plan.
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To date, TWIA has disbursed $268.3 million in claims payments, while FAIR Plan has paid out $74.9 million. Both organizations report that a substantial number of claims have been closed or have already received partial payments. TWIA has closed or made payments on nearly 75% of filed claims, while FAIR Plan has addressed 95% of claims in the same way.
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This update marks the end of regular bi-weekly reports on Hurricane Beryl claims. Going forward, TWIA and FAIR Plan will include any additional claim updates and information in meeting materials for their respective quarterly Board of Directors and Governing Committee meetings.
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DWC Holds 2024 Workers' Compensation Conference
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ICT attended the DWC’s 2024 Workers' Compensation Conference, held virtually on October 22–23. DWC's Legal Services and External Relations teams provided a legislative and case law update, highlighting significant case law developments impacting Texas workers' compensation and potential issues for the next legislative session, such as extent of injury and virtual contested case hearings. Mark Pew from WorkCompCollege.com and Stuart Colburn of Downs Stanford discussed 15 key trends shaping workers' compensation, including the gig economy, nuclear verdicts, and designated doctors. ICT members can access the presentation slides on the member Info Hub.
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What to expect in Texas on Election Day
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As Texas gears up for the upcoming election, all eyes are on the highly competitive U.S. Senate race between incumbent Ted Cruz and challenger Colin Allred.Â
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Key Points:
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Competitive Senate Race: Democrat Colin Allred challenges Republican Ted Cruz in a highly anticipated U.S. Senate election, marking a rare competitive race for Texas.
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Historical Context: Texas Democrats have not won a statewide race in 30 years, despite several attempts, including notable campaigns by Beto O’Rourke in 2018 and M.J. Hegar in 2020.
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Significant Spending: Over $100 million has been spent on the Senate race, surpassing expenditures for the presidential election in Texas.
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Voter Dynamics: Texas has 38 U.S. House districts, with only three considered competitive. The political landscape shows potential shifts, particularly in South Texas.
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Presidential Race Stakes: An unexpected Democratic win in Texas could have major implications for the national election, especially for Donald Trump’s presidential ambitions.
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How local rules fuel high housing costs in Texas
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Housing costs in Texas are reaching record highs due to a significant shortage of homes, with an estimated need for 306,000 additional units. Strict zoning regulations in major cities hinder the construction of diverse housing types, such as townhomes and duplexes, while allowing for more single-family homes. This imbalance limits the overall housing supply, forcing Texans to compete for limited options and driving prices and rents even higher.
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Key Points:Â
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1. Rising Housing Costs: Texas is experiencing some of its highest housing costs in decades, largely due to a significant shortage of homes.
2. Urgent Need for New Homes: Estimates suggest the state needs to build approximately 306,000 additional homes to alleviate the shortage and stabilize prices.
3. Zoning Challenges: Strict zoning regulations in major Texas cities limit the construction of diverse housing types, such as townhomes and duplexes, which could help increase the housing supply.
4. Single-Family Home Dominance: While developers can build single-family homes nearly anywhere, options for other housing types are severely restricted, contributing to the supply crisis.
5. Competitive Market: The limited housing options force Texans to compete for a small pool of homes, driving up prices and rents across the state.
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We Tried to Shop Our Way to Cheaper Car Insurance. It Didn’t Work.
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Amid rising car insurance premiums, two New York Times reporters attempted to find cheaper coverage by comparing multiple insurers and using online comparison sites but ultimately failed to secure better rates. Despite their clean records and high deductibles, various carriers offered no substantial savings due to high repair costs, rising accident rates, and increased theft in densely populated Brooklyn. The experience underscores the challenges facing drivers as insurers adjust rates to account for inflation and risk factors.
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Key Points:
- Car insurance premiums have surged 51% nationwide over the past three years, impacted by increased repair costs, accident frequency, and weather-related claims.
- Brooklyn’s high density and theft rates contributed to additional premium hikes, particularly for residents like the reporters.
- Online insurance comparison sites failed to provide meaningful savings or coverage options equivalent to their current policies.
- USAA offered a tracking program to potentially reduce premiums, but the customer was hesitant about the privacy implications.
- Ultimately, the existing carriers—GEICO for Tara and USAA for Ron—remained their best options, illustrating the difficulty in lowering insurance costs amidst widespread inflation in the auto industry.
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Just how doomed is home insurance?
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In the first half of this year, global insured losses from natural disasters exceeded $60 billion, driven mainly by severe thunderstorms, flooding, and wildfires, and are expected to rise with recent events like Hurricane Helene. This increase in damages has led to sharply rising home insurance premiums, especially in high-risk areas like Florida, where some rates have surged as much as 400% over five years. As private insurers withdraw from high-risk states, state-run insurance programs are becoming the last resort for homeowners. Additionally, the National Flood Insurance Program (NFIP) faces a growing debt crisis, with $20 billion owed to the US Treasury, risking coverage lapses if not reauthorized by Congress in December.
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Key Points:
- Global insured losses from natural disasters have surpassed $60 billion in 2024, significantly above the 10-year average.
- Insurance premiums are rising, particularly in high-risk areas, with some Floridians experiencing up to a 400% increase in five years.
- Private insurers are increasingly withdrawing from high-risk states, leaving many homeowners dependent on costly state-run insurance.
- The NFIP faces a looming funding deadline with an unsustainable debt burden, threatening coverage for millions.
- Climate change and inflation are compounding risks, leading insurers to raise rates and adapt to growing extreme weather uncertainties.
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Climate change reshapes cities, both environmentally and financially
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Many U.S. cities face an escalating financial risk loop as climate-related disasters increase in frequency and severity, exacerbated by the withdrawal of insurance providers and rising coverage costs. Large cities like Houston and Tampa, and smaller ones like Port Arthur, are particularly vulnerable, requiring urgent investments to combat flooding, extreme heat, and other climate threats. However, the insurance crisis—marked by coverage rate hikes or complete withdrawals—has triggered a precarious situation where property values decline, reducing tax revenue and the ability to fund necessary infrastructure. As insurance becomes unaffordable or unavailable, more homeowners opt out, further destabilizing communities and straining city finances.
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Key Points:
- Rising climate threats intensify the need for adaptation investment in cities, but insurance pullbacks and high costs worsen economic strain.
- A record-breaking 28 billion-dollar climate disasters in 2023 alone highlight the growing frequency of extreme events.
- The absence of affordable insurance risks widespread property devaluation, impacting city tax revenues and investment abilities.
- Cities without sufficient infrastructure investments risk a "financial death spiral" where chronic crises worsen due to overlapping vulnerabilities.
- Rating downgrades of municipal bonds due to climate risk could limit cities' access to funds, hindering future disaster recovery and preparation efforts.
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Out to Alarm Texas Campaign: Fire Safety in San Antonio
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This past week, Rich Johnson, Director of Communications and Public Affairs of the Insurance Council of Texas, teamed up with the San Antonio Community Fire Department and State Farm Agent Dean Eastman to deliver over 90 donated smoke alarms to the community. This generous contribution is part of a broader Out to Alarm Texas initiative to enhance fire safety awareness and ensure that every home has the essential tools to protect against fire hazards. Click here to learn more about Out to Alarm Texas.
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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:Â September 15-16, 2025
- P&C Insurance Symposium:Â September 17-18, 2025, in Austin, TX
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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, contact Linda Vallejo.
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