ICT is thrilled to announce the panelists for discussion on  resilience & mitigation at the 2023 ICT/AFACT Property & Casualty Insurance Symposium. Eleanor Kitzman, Founder & CEO of Resolute Underwriters and a former Commissioner of the Texas Department of Insurance, Julie Shiyou-Woodard, President & CEO of Smart Home America and Fred Malik, Managing Director of FORTIFIED at the Insurance Institute for Business & Home Safety will drive a discussion on building resiliently before, during, and after catastrophes.

The panel will share their insights on how the insurance industry can contribute to building resilience in the face of catastrophes. This promises to be an informative and insightful exchange, providing a comprehensive view on how the industry can get involved in promoting resilience.

For more information on registration, hotels and agenda visit the ICT website.

Listen now to the ICT on P&C podcast series. This year we have focused on legislative and regulatory issues that are impacting the insurance industry. Texas' 88th legislative session is in full-swing and we are tracking over 400 bills that could touch the insurance industry. The podcasts are designed to condense each issue into 30-minutes of bite-sized topics. 

Podcasts are available on Apple Podcasts, Google Play and ICT's YouTube Channel. 

We are entering the final 20-day push of the legislative session and there are some key house deadlines this week that will shape the fate of what bills ultimately pass.

• Monday, May 8 was the last day that a House committee could report out a House Bill. House Bills that make it out of committee face another hurdle on May 11, the last day the House can consider House Bills on second reading the daily or supplemental calendar.
• Friday, May 12 - The last day the House can consider House "consent" bills, which are bills with no opposition on the House Local & Consent Calendar. This means that any House Bill that is not on either of those calendars will die and would have to be amended on to a moving bill to survive.

There are still many bills of interest to property and casualty in play and we will update members after the key deadlines pass. 

OEM Bills Still Possible

• Tuesday, May 9 - House Insurance will consider SB 1083 by Senator Phil King, which limits consumer choice in auto repair by requiring insurers to mandate the use of an OEM part, product, or repair process for a vehicle that has been owned by the insured for 36 months or less and that was a new motor vehicle when delivered to the insured. Another bill dealing with OEM and auto repair, HB 1321 by Representative Travis Clardy was heard and is pending in House Insurance. 

Please reach out  to Angie Cervantes with any questions. 

Rep. Bryan Slaton resigned from the Texas House on Monday after an investigation determined that he had an inappropriate sexual relationship with a 19-year-old woman on his staff, providing her with enough alcohol before their encounter that she felt dizzy and had double vision.

Pressure had mounted on the Royse City Republican to resign since Saturday, when the House General Investigative Committee released a 16-page report finding Slaton, who is 45 and married, had engaged in inappropriate sexual conduct with his aide. The committee of three Republicans and two Democrats recommended that Slaton be the first state representative expelled from the body since 1927.

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For a State v. Volkswagen Aktiengesellschaft and State v. Audi Aktiengesellschaft, ___ S.W.3d

___, 2023 WL    (Tex. May 5, 2023)

This decision may be of interest to insurers as it discusses the control some manufacturers have over their dealerships and how that control was used to make changes on vehicles brought into the dealerships for repair.  Although not directly related, interesting in light of ongoing discussions during this session on mandated use of OEM parts and repair processes.

On May 5, 2023, the Texas Supreme Court released an opinion holding that Texas has jurisdiction over Volkswagen (VW) and Audi in an action brought by the State of Texas involving claims arising from VW and Audi’s scheme to use software to avoid detection of violations of emissions by their vehicles. The emissions-beating technology was installed during post-sale service at Texas dealerships. In holding that Texas has jurisdiction, the Court observes the control that VW and Audi maintained over their Texas distributors and dealers.  The Court held that the German manufacturers could reasonably anticipate being haled into a Texas court because they knowingly and purposefully leveraged a distribution system under their contractual control to bring the tampering software to Texas. 

The decision also noted that “(w)hen targeted vehicles were presented for service or recall work in Texas, the software was “transmit[ted]” to those vehicles via the manufacturers’ proprietary diagnostic system.”

For a full summary and report, visit the ICT Member InfoHub.

The National Council on Compensation Insurance (NCCI) filed Item B-1448—Revisions to Basic Manual Rules Related to Payroll Inclusions and Payroll Exclusions.

The filing proposes to clarify and enhance rules related to payroll inclusions and exclusions in NCCI’s Basic Manual for Workers Compensation and Employers Liability Insurance.

Visit the NCCI Manual Rule Filings for 2023 webpage to see a copy of the notice, the filing, and how to submit comments.

When the Federal Emergency Management Agency unveiled its new Risk Rating 2.0 methodology for calculating flood insurance, advocates and critics alike warned that it would mean higher premiums for thousands of property owners, especially in low-elevation coastal areas.

Now, the full impact of the sticker shock is becoming clear, thanks to new data released by FEMA that shows price increases – and decreases – by county and by ZIP codes. For some parts of Florida, including the appropriately named Hell Gate on the East Coast, flood insurance will spike an average of 342%, according to the Miami Herald, which analyzed some of the data.

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U.S. Sens. Tim Scott (R-SC) and John Thune (R-SD) are among a group of lawmakers expressing concerns over efforts by the Federal Insurance Office to bring environmental, social, and governance (ESG) standards to the insurance industry.

“Across the nation, insurers work day in and day out to provide reliable coverage to the public to ensure they are protected when adverse weather events strike or accidents occur,” the senators wrote. “And, to be clear, it is in insurers’ best interest to take into account these various risks – whether it be weather risks or otherwise – that could affect their customers and integrity of their policies,” the senators wrote in a letter to U.S Treasury Secretary Janet Yellen, who oversees FIO.

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Climate change risk isn’t tamping down on the flow of Americans moving to some of the most endangered states, but it is helping send home insurance premiums through the roof.

Homeowners are flocking to the likes of Florida and Texas, despite the growing threat of climate-related weather disasters, according to data from LexisNexis Risk Solutions reported by the New York Times.

Property insurance costs are rising across the country, with premiums up an average of 21 percent since 2015. Those bumps are significantly higher in states that carry more climate risk, however, including Florida (57 percent) and Texas (40 percent). 

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