Good afternoon!
For the latest updates from ICT in the insurance industry, follow us on LinkedIn and make sure to enable notifications 🔔
For more Texas-related P&C insurance information and news, visit the ICT website
|
|
ICT's Weekly Legslative Roundup
|
Lt. Governor Announces Final Round of Priorities
|
On March 13, Lt. Gov. Dan Patrick released his second and final list of priority bills for the session. While none are directly related to insurance, several are worth noting:
- SB 30 – Curbing Nuclear Verdicts: Part of the Texans for Lawsuit Reform (TLR) agenda, this bill aims to address excessive lawsuit awards. ICT supports this effort.
- SB 34 – Wildfire Response
- SB 39 – Protecting Texas Trucking: Another litigation reform measure that will refine the commercial trucking litigation bill passed in a previous session. ICT supports this initiative as well.
|
SB 213 Prohibiting 'Tying' Heard in Senate Business & Commerce
|
On Tuesday, March 11, the Senate Business & Commerce Committee heard SB 213, filed by Sen. Royce West. As introduced, SB 213 prohibits insurers from requiring consumers to bundle multiple personal lines property or casualty insurance policies as a condition for purchasing coverage, classifying such practices as unfair competition or deceptive acts.
ICT submitted written testimony, registering “on” SB 213, and expressed concerns that its broad language could unintentionally affect umbrella and excess personal lines coverages typically sold as add-ons. The comments noted that, as a general principle, ICT supports limiting the prohibition on “tying” to personal auto and homeowners policies—only in cases where consumers lack market options or are required to buy unnecessary coverage. ICT also recommended using the term “tying” instead of “bundling” to align with existing Insurance Code language and suggested placing any new prohibitions in Chapter 556 rather than Chapter 541 to avoid unintended legal consequences.
ICT has been working with Sen. West on proposed amendments to address these concerns and will continue to do so. A committee substitute was introduced that included some of ICT’s proposed changes. The bill was left pending, and ICT continues to work with Sen. West’s office on refining the language.
ICT's written testimony can be found in the Member InfoHub.
|
SB 1006 Voted Out of Senate Business & Commerce Committee
|
A committee substitute for SB 1006, filed by Sen. Mayes Middleton, which implements TDI’s biennial recommendation to require insurers to provide a written reason for policy declinations, cancellations, and nonrenewals, was unanimously voted out of the Senate Business & Commerce Committee during its March 11 hearing.
The committee substitute adds Section 551.006, requiring insurers to submit a quarterly written report to TDI summarizing their reasons for declinations, cancellations, or nonrenewals. The report must follow the commissioner’s prescribed format and be organized by the applicant’s or policyholder’s ZIP code.
ICT has engaged with both TDI and Sen. Middleton’s office, advocating to maintain current law for declinations at a consumer’s request, allow electronic notices for all, and extend the effective date. ICT will continue working to provide constructive feedback regarding the implications of the new reporting requirement.
|
HB 145 by King, Related to Utilities’ Immunity, Heard in House State Affairs
|
On March 12, the House State Affairs Committee heard HB 145, relating to wildfire risk planning and liability for electric utilities. The bill is part of a package filed by Rep. Ken King, chair of the committee, in response to the Panhandle wildfires of February 2024.
The first part of the bill would allow electric utilities to self-insure more easily than under current law. Self-insurance would be permitted when it is "in the public interest" and when the utility "cannot obtain commercial insurance for a reasonable premium." The bill does not allow a utility to self-insure for events it causes intentionally, recklessly, or with gross negligence.
More significantly, the bill would require most electric utilities to file a wildfire mitigation plan. If the plan is approved by the Public Utility Commission (PUC), the bill would provide an affirmative defense to the utility for liability if it is in "material compliance with relevant measures" of the plan.
This provision raises concerns as it could preclude post-fire recovery, including by insurers that pay property claims and may seek subrogation.
ICT testified “on” the bill, noting concerns about its potential impact on subrogation and the need for greater clarity to ensure the bill meaningfully reduces fire risk. ICT is engaged with the bill author and other stakeholders to address these issues if this portion of the bill is retained.
|
TDI Rule Hearing on Tying
|
On March 10, ICT testified at the TDI rule hearing for proposed rule 28 TAC 21.008, which prohibits “tying arrangements” and aims to prevent unfair or deceptive practices under Insurance Code Chapter 541. ICT’s testimony focused on TDI’s authority to create a new deceptive trade practice, referenced existing laws prohibiting tying in the Insurance Code (Chapter 556 prohibits tying by financial institutions for insurance products, but no such prohibition exists for insurers), and emphasized the existence of a competitive market that mitigates the argument that tying constitutes unfair competition.
Texas Appleseed testified in support of the prohibition and suggested expanding it to other lines, including umbrella policies.
ICT plans to submit written comments by the March 24 deadline.
|
|
Member Spotlight: Columbia Insurance Unveils New Brand Identity
|
ICT member, Columbia Insurance Group launched a new brand identity, marking a key milestone in its ongoing business transformation. The rebranding includes a modernized logo, a shortened name, an updated website, and a series of videos.
“Our new branding reflects our dedication to continuous improvement,” said Todd Ruthruff, president and CEO.
Columbia also unveiled a video, Relaunching Columbia Insurance, and plans to introduce a new online business platform for agents and policyholders this summer.
Read More
|
ICT Responds to Media Inquiries Regarding Legislative Issues
The Insurance Council of Texas (ICT) has been actively responding to media inquiries regarding key legislative issues, including SB 213, which would prohibit “tying,” and a proposed rule by the Texas Department of Insurance. Additionally, ICT has provided insight on HB 3689, which seeks to change the funding structure of the Texas Windstorm Insurance Association and a bill that would require automatic explanations for policy declinations, cancellations, and nonrenewals. ICT remains committed to supporting legislation that ensures Texas maintains a strong, competitive insurance market benefiting both the industry and consumers. Read more below.
|
|
ICT in the News: Could Unbundling Save You Money? What Texas Insurance Bill Says
|
Texas lawmakers are debating Senate Bill 213, which would prohibit insurers from requiring customers to bundle home and auto insurance. The bill aims to give consumers more freedom to choose policies and foster competition in the insurance market.
- Senate Bill 213 would make mandatory bundling of home and auto insurance illegal, leaving bundling optional.
- The bill is supported by consumer groups, who argue that bundling limits competition and inflates prices.
- The Texas Department of Insurance (TDI) is also proposing a rule to ban "tying arrangements," where bundling is forced.
- The legislation would apply to all insurers in Texas, promoting fairer competition and giving consumers more choices.
- If the bill passes, it would increase consumer flexibility in selecting insurance policies that best fit their needs.
|
|
ICT in the News: Texas bill aims to ban forced home-auto insurance bundling
|
Texas lawmakers and regulators are considering whether insurers should be allowed to require bundling of home and auto policies. Consumer advocates argue that mandatory bundling limits options and could raise concerns about unfair competition.
- Senate Bill 213, introduced by Senator Royce West, would make it illegal for insurers to mandate bundling for home and auto policies.
- Consumer groups argue bundling limits competition and reduces insurers' incentive to keep auto rates competitive.
- Some states have anti-rebating laws that could complicate bundling practices and limit the effectiveness of discounts.
- Farmers Insurance clarified that it does not require bundling and has updated its policies to allow home-only renewals without bundling.
- TDI has said they received nearly 40 complaints of consumers reporting mandatory bundling to renew home insurance.
|
|
ICT in the News: Home insurance industry fighting explanation policy
|
Texas lawmakers are considering a bill requiring insurers to provide automatic explanations for policy cancellations and nonrenewals, but the insurance industry argues it would impose unnecessary costs with little benefit. The debate comes as homeowners face rising premiums and coverage challenges, with lawmakers seeking better data on insurance availability across the state.
- Under current law, insurers must provide reasons for dropping coverage only if homeowners request it.
- The proposed bill would mandate automatic explanations, which insurers argue would be costly and not always useful.
- Lawmakers say better data is needed to understand where and why coverage is being reduced.
- The Texas Department of Insurance (TDI) does not currently collect comprehensive data on cancellations and nonrenewals.
- A recent federal report on climate change and home insurance left Texas blank due to TDI’s lack of data collection.
|
|
ICT in the News: As wildfire anxiety grows, Austin plans to designate half the city as at risk of fire damage
|
Austin officials are planning to designate nearly half the city as at risk for wildfire damage, a significant expansion from previous maps. The move comes as experts warn of increasing wildfire threats due to rising temperatures, drought conditions, and embers traveling miles to ignite homes.
- The updated Wildland-Urban Interface (WUI) map will classify 71% of Austin’s land parcels as wildfire-prone, up from 38% a decade ago.
- Fire officials argue the expansion aligns with national best practices and accounts for embers as a major cause of home ignitions.
- Critics say the city should focus more on fire prevention, such as fuel mitigation, rather than only on home protection measures.
- The new designation will increase building requirements for fire resistance, which may add costs for homeowners and developers.
- Insurance rates in wildfire-prone areas are already rising, and the new map could further impact premiums.
|
Check out all things ICT!
|
ICT Education Foundation Releases 2024 Impact Report
The Insurance Council of Texas (ICT) Education Foundation has released its 2024 Impact Report, highlighting its ongoing efforts to support the next generation of insurance professionals. This year, the Foundation awarded $75,000 in scholarships to 40 students at its nine partner universities, helping them pursue careers in the industry. The report features success stories from past scholarship recipients and recognizes the educators who make these opportunities possible. Read the full report to see how the Foundation is shaping the future. Please donate TODAY and help us reach our goal of $100,000 including $20,000 from individual donors. DONATE TODAY.
|
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 in Austin, TX
- 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.
|
Enjoying this newsletter? Feel free to share it with your colleagues! Just a reminder: The ICT News to Know is a benefit exclusive to ICT members and we ask you not share outside your organization.
|
|
