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ICT's Weekly Legislative Roundup
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 Senate Votes Out SB 1642 and SB 1643Â
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Hearings
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On Wednesday, April 23, the Texas Senate passed two major regulatory reform bills, both filed by Senate Business and Commerce Committee Chair Charles Schwertner:
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SB 1642 – Converts the Texas Department of Insurance (TDI) from a single-commissioner structure to a three-commissioner system.
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SB 1643 – Requires prior approval for personal and commercial lines insurance rate changes exceeding 10%, either increases or decreases.
The Insurance Council of Texas (ICT) testified against both bills during Senate Business and Commerce hearings. Prior to the vote, ICT also met with every Senate office to provide information outlining the potential harm these measures pose to the Texas property and casualty insurance market.
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Key Points:
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SB 1643 – Sen. Kelly Hancock, former chair of the committee, raised concerns about the underlying causes of rising insurance rates, such as lawsuit abuse, and noted that the bill does not address these issues.
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Final vote: 25–5 (No votes: Sens. Creighton, Hall, Hancock, Hughes, and Kolkhorst).
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SB 1642 – Passed without floor debate.
Both bills now move to the Texas House. ICT has already begun meeting with members of the House Insurance Committee. Neither bill currently has a House companion.
Senate Business and Commerce Committee Advances TWIA Omnibus Bill
On April 24, the Senate Business and Commerce Committee voted out a committee substitute to SB 2530 by Sen. Mayes Middleton.
Original bill provisions include:
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Exempts the Texas Windstorm Insurance Association (TWIA) from premium and maintenance taxes.
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Prohibits lobbying by TWIA employees or board members.
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Requires TWIA headquarters to be located in a first- or second-tier coastal county.
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Adjusts Class 1–3 member assessments annually based on TWIA’s probable maximum loss (PML) growth.
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Changes the PML benchmark from 1-in-100 to 1-in-50.
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Requires PML modeling to use the model producing the lowest PML, subject to the insurance commissioner’s approval or rejection.
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Excludes loss adjustment expenses (LAE) from PML calculations.
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Revises TWIA board composition.
Committee substitute changes include:
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Removes county-specific designations for board seats.
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Moves the insurance commissioner’s rate approval deadline to November to align with the revised rate-setting schedule.
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Requires a two-thirds vote by the TWIA board for rate increases.
Assessment changes remain in the bill. It now moves to the full Senate.
House Insurance Committee Takes Up Appraisal Clauses
On April 23, the House Insurance Committee considered legislation related to appraisal clauses in insurance policies:
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HB 345 (Perez) – Withdrawn; Rep. Perez signed onto SB 458.
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SB 458 (Schwertner/Dean) – Requires mandatory appraisal clauses in personal auto and residential property policies. Includes binding language with exceptions for fraud or mistake, grants TDI rulemaking authority, and preserves existing policy forms.
ICT testified in support of SB 458 as passed by the Senate, highlighting that the bill reflects significant stakeholder input and strikes a reasonable balance. While not perfect for all parties, ICT believes the bill is workable for the industry and preserves the appraisal option for companies that comply with the new requirements. ICT continues to work with Chairman Dean’s office to maintain the Senate version.
Other Legislative Updates
On April 23, the House Judiciary and Civil Jurisprudence Committee heard:
Several additional bills of interest have cleared the House:
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HB 149 (Capriglione) – Regulates artificial intelligence while providing a safe harbor for insurers.
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HB 2488 (Bell) – Allows remote contested case hearings in workers’ compensation cases.
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HB 145 (King) – Addresses utility liability in wildfire cases.
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HB 2067 (Paul) – A TDI-recommended bill on nonrenewals, cancellations, and declinations. The bill includes ICT-supported amendments:
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Delays the effective date to 2026.
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Allows electronic notice delivery.
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Limits reporting requirements to protect company-specific information.
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 NCOIL Spring Meeting HighlightsÂ
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The National Council of Insurance Legislators (NCOIL) met April 24–27 in Charleston, South Carolina, and considered several model acts of interest to property/casualty insurers. NCOIL brings together state legislators from across the country to discuss insurance issues.
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The group passed a model act regarding “marketplace guarantees” for short-term home rental programs. The model, backed by rental platform Airbnb, supports guarantees that protect property owners from damage caused by renters. It had been debated over several NCOIL meetings, primarily concerning whether regulation of these guarantees as something other than insurance products was appropriate. The model passed on a 12–6 vote.
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NCOIL’s Property and Casualty Insurance Committee also considered, but did not vote on, a model act addressing insurers’ use of aerial imagery. This proposal has raised several issues for insurers and stakeholders, including the accuracy of aerial imagery, related privacy concerns, and whether its use should trigger a “right to cure” any defects it reveals. The current draft is considered less problematic than earlier versions that included a broad “right to cure,” but it remains a focus due to its potential impact on underwriting and insurance availability.
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Finally, the Workers’ Compensation Committee continued its discussion of a potential model act addressing experience rating. The draft covers two key areas of interest to workers’ compensation insurers: it prohibits the use of experience rating as the sole factor in awarding contracts, and it requires modification of experience ratings if a later subrogation claim by the workers’ compensation insurer succeeds in relation to a claim. Discussion on this proposal will continue at future meetings.
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Congratulations to ICT Board Member Kevin Matula
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The Insurance Council of Texas proudly congratulates board member Kevin Matula on being named the 2025 Rotary Outstanding Young San Antonian by the Rotary Club of San Antonio. Kevin was honored during a ceremony at the Witte Museum for his exceptional leadership, public service, and dedication to mentoring the next generation of leaders
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A respected government relations executive at USAA, Kevin’s recognition reflects not only his deep commitment to community and civic engagement but also the values we share at ICT. We are honored to have him on our board and applaud this well-deserved recognition.
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READ MORE
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Join us in Austin for the 2025 ICT Property & Casualty Insurance Symposium
📅 September 17–18, 2025 | 🏨 Renaissance Austin Hotel
Early Bird Registration Open – Ends May 31!
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.
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Highlights include:
🔹 2025 Legislative Recap – What passed, what changed, and how it affects you
🔹 Litigation Reform – Tackling excessive lawsuits and market impacts
🔹 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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2025 ICT Workers' Compensation Conference
📅 September 16–17, 2025 | 📍 Austin, TX
🎟️ Early Bird Registration Open – Ends May 31!
Join us for two dynamic days of insight and innovation as we dive into the future of workers’ comp in Texas.
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Highlights include:
⚖️ Regulatory Recap – What the latest Texas legislation means for WC
🤖 AI in WC – Real-world tech transforming claims, safety & care
🧠 Total Worker Health – Building safer, healthier, more resilient teams
🩺 Telemedicine Trends – What's next for care delivery in WC
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 ICT In the News:Â
Soaring insurance rates squeeze Texas homeowners. What’s driving the surge?
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As home insurance premiums climb across North Texas, industry leaders and local homeowners are feeling the strain. The Insurance Council of Texas, which participated in a recent interview, says increasing storm activity and inflation are driving higher costs — and solutions must focus on risk reduction and mitigation.
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Key points:
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Homeowners insurance premiums in Texas rose 22% in 2024, largely due to severe storms and escalating material costs, according to the Texas Department of Insurance.
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Richard Johnson, spokesperson for the Insurance Council of Texas, emphasized that Texas ranks among the top states for weather catastrophes, including hurricanes, hail, and tornadoes.
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Insurance companies are raising deductibles and pulling back on new business in high-risk areas like North Texas, putting additional pressure on both existing homeowners and first-time buyers.
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Rising insurance costs are affecting mortgage affordability and charitable work, with homeowners like missionary Craig Alsup diverting more resources to cover insurance increases.
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Johnson recommended asking insurers about available discounts and supported incentive programs to help homeowners fortify properties — similar to Florida’s grant model — as a long-term strategy to reduce risk and lower rates.
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 ICT In the News:Â
Home insurance rates are through the roof. Can Texas lawmakers do anything?
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As home insurance premiums surge across Texas, state lawmakers are weighing proposals to ease rising costs and improve housing affordability. The Insurance Council of Texas says lawmakers should focus on solutions that reduce risk and prevent losses, which in turn can help lower rates.
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Key points:
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Texas home insurance premiums increased by 22% in 2024, according to the Texas Department of Insurance, creating added pressure for potential homebuyers.
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Richard Johnson, spokesperson for the Insurance Council of Texas, highlighted the importance of long-term strategies, noting that “while addressing rate hikes is important, it’s critical to focus on solutions that prevent losses and help mitigate future risks.”
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The ICT supports legislation such as roofer licensing and a proposed grant program to help homeowners fortify their properties against wind and hurricane damage.
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Senate Bill 1643 would require insurers to get state approval for property or auto insurance rate increases over 10%, though insurer groups warn this could destabilize the market.
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Lawmakers are also considering broader reforms, including increased transparency, limits on bundling home and auto insurance, and changes to insurance department leadership.
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 ICT In the News:Â
Texas storms are blowing up homeowners’ insurance premiums
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The Fort Worth Star-Telegram reports that protecting a home in North Texas is becoming more costly as insurance premiums continue to climb. The Insurance Council of Texas contributed to the report, pointing to severe storms and inflation as key reasons behind a 22% spike in homeowners insurance rates in 2024.
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Key points:
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Homeowners insurance premiums rose 22% in 2024, according to the Texas Department of Insurance, driven by a surge in claims from frequent and damaging storms.
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The Insurance Council of Texas noted that Texas ranks among the top states for catastrophic weather events, including hail, flooding, and hurricanes.
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Wind and hail are the leading cost drivers in North Texas, with some insurance companies pulling back from offering new policies in the region.
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Material costs are rising rapidly, with roofing contractors reporting increases of up to 10%, further inflating repair and replacement expenses.
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While lawmakers aim to reduce property taxes, industry experts say insurance costs—largely dictated by risk and inflation—remain difficult to control.
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 ICT In the News:Â
Texas mandatory right to appraisal bill passes Senate, supported in House hearing testimony
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A right to appraisal bill, SB 458, received near-unanimous approval in the Texas Senate and is now under consideration by the House Insurance Committee. The Insurance Council of Texas voiced support for the bill, which would require appraisal clauses in all personal auto and home insurance policies.'
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Key points:
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SB 458 aims to restore mandatory appraisal provisions in insurance policies, providing a mechanism to resolve disputes over the amount of loss without litigation.
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Albert Betts, executive Director of the Insurance Council of Texas, called the bill a "balanced approach" that preserves appraisal options for insurers while offering clarity for policyholders.
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Appraisal was used in less than 0.02% of auto claims, but when it was, claimants often received thousands more than the insurer’s initial offer, according to TDI data.
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Texas Watch found appraisal awards averaged 40% higher than insurance offers, supporting broader consumer protections through the bill.
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The bill allows both insurers and policyholders to request appraisal, and directs TDI to oversee rulemaking and act as an umpire when needed.
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 Industry News:Â
Texas Senate Approves Bills Aimed at Curbing Insurance Rate Hikes, Lowering Housing Costs
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The Texas Senate on Wednesday passed a series of bills aimed at easing financial pressure on homeowners and drivers, particularly seniors and disabled Texans. The legislation targets rising insurance premiums and property taxes through increased oversight and expanded exemptions.
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Key points:
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Senate Bill 1643Â would require insurance companies to obtain Texas Department of Insurance pre-approval for rate changes exceeding 10%, aiming to protect consumers from sudden premium hikes under the current "file-and-use" system.
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The bill applies to both increases and decreases in rates to discourage predatory pricing tactics and maintain market stability.
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Senate Bill 1642Â proposes restructuring TDI leadership from a single commissioner to a three-person panel to improve responsiveness to both consumers and insurers.
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Senate Bill 23Â would increase the homestead exemption to $200,000 for Texans 65 and older or those with disabilities, offering significant property tax relief.
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Combined with SB 4, which raised the general homestead exemption to $140,000, senior homeowners could see nearly $1,000 in annual savings and, in many cases, elimination of school maintenance taxes.
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 Industry News:Â
Texas Senate Bill 30: An Existential Threat to Justice Based on a Fictional “Nuclear Verdict” Crisis According to Two Prominent Attorneys
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An op-ed by attorneys Cody Dishon and Will Moye argues that Texas Senate Bill 30 threatens fundamental rights in the state’s legal system by falsely framing “nuclear verdicts” as a crisis. They say the bill benefits insurance companies at the expense of justice, particularly for victims of catastrophic harm.
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Key Points:
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SB 30 would gut long-standing legal protections for victims of wrongful death, disfigurement, sexual assault, and serious injury by capping damages and removing jury discretion.
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The “nuclear verdict” narrative is misleading—data shows that large jury awards are rare, and the majority of verdicts in Texas are modest, with over 48% under $50,000.
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Insurance companies are making record profits, with no evidence that SB 30 will lower premiums; even industry lobbyists admitted it won't lead to rate reductions.
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Victims and families face greater financial burdens under SB 30 due to unconstitutional caps on medical expenses, especially affecting the uninsured and underinsured.
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Critics argue SB 30 is driven by corporate influence, particularly Texans for Lawsuit Reform, which has heavily lobbied for the bill despite widespread opposition from legal experts and victims' advocates.
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 Industry News:Â
Insurance Corruption In Deep South Texas
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The Lower Rio Grande Valley in South Texas has long carried a reputation for corruption in public-sector business, prompting some insurers to avoid doing business in the region. Two recent cases involving local insurance brokers highlight the consequences of fraudulent practices and the uneven outcomes of justice.
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Key points:
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Perception of corruption: The Valley is widely viewed as a region where unethical business practices—particularly in the public sector—are common, leading some insurers to redline the area.
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Swetnam case:Â Michael Swetnam Jr. was sentenced to three years in prison for selling fake windstorm and altered liability policies to Valley Baptist Health System, defrauding the hospital of nearly $3.8 million.
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Restitution and forfeiture:Â Swetnam must repay nearly $3 million and forfeit a home purchased with illicit gains.
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Olivarez case: Arnulfo “Arnie” Olivarez admitted to bribing public officials for lucrative contracts but received only probation and a $25,000 fine, while retaining his insurance license.
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Lasting impact:Â Despite differences in punishment, both men suffered lasting reputational damage, a consequence the author suggests may be more enduring than any legal penalty.
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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:Â September 15-16, 2025
- P&C Insurance Symposium:Â 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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