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ICT's Weekly Legislative Roundup
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Regulatory Reform Bills Voted Out of Senate Business & Commerce Committee
The Senate Business & Commerce Committee has voted out two major regulatory reform bills authored by Chairman Charles Schwertner. ICT considers these bills a top priority and is actively engaging with legislative offices to explain why this approach is wrong for Texas and the potential impact on the state’s proven regulatory framework.
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Senate Bill 1643 (prior approval ±10%) – At its Tuesday, April 8, hearing, the Senate Business & Commerce Committee voted out a committee substitute for SB 1643, which now includes commercial auto and property lines under the proposed prior approval requirement for rate changes of 10% or more. The substitute passed unanimously (10-0) and now heads to the full Senate for consideration. The chair referred to the bill as a "flex-band" approach.
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Senate Bill 1642 (TDI changes to three-commissioner structure) – At its Thursday, April 10, hearing, the committee voted out SB 1642, which replaces the current single insurance commissioner with a three-member insurance commission appointed by the governor. The bill does not affect the Commissioner of Workers’ Compensation. A committee substitute added an executive director to the structure.
Both bills now head to the full Senate. Neither currently has a House companion.
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Senate Business & Commerce Hears TWIA Legislation
On April 8, the Senate Business & Commerce Committee heard two Texas Windstorm Insurance Association (TWIA) bills authored by Sen. Mayes Middleton:
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Senate Bill 2530 is a broad TWIA reform bill that proposes significant structural changes. It would exempt TWIA from premium and maintenance taxes, prohibit lobbying by TWIA employees and board members, and relocate TWIA’s operations to a first- or second-tier coastal county. The bill also adjusts Class 1–3 member assessments annually based on TWIA’s probable maximum loss (PML) growth, changes the PML benchmark from 1-in-100 to 1-in-50, and mandates the use of the lowest PML model (excluding loss adjustment expenses), subject to the insurance commissioner’s approval. It also revises the composition of the TWIA board.
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Senate Bill 2571 focuses on TWIA’s funding structure for post-2025 catastrophe losses. It changes the cap on member assessments to 33% of the PML and requires that these assessments begin immediately after depletion of the Catastrophe Reserve Trust Fund (CRTF). It also limits the combined use of all public securities—including pre-event bonds—to no more than 33% of the PML.
During the hearing, Sen. Middleton cited rising reinsurance costs and the need for a more “dynamic” funding structure. ICT testified in opposition to both bills and is continuing to engage on their potential impacts to the broader insurance market.
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House Insurance Committee Recap: April 9 Hearing
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The House Insurance Committee met on April 9 to hear several bills of interest to the insurance industry:
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House Bill 722 (Bucy) – Requires insurers to disclose methods for auto appraisals and loss determinations. ICT testified in opposition.
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House Bill 946 (Garcia Hernandez) – Prohibits “oral releases” of auto insurance claims. ICT registered in opposition.
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“Widow Penalty” Bills – HB 1809 (Hernandez) and HB 4392 (Morgan) – Prohibit rating or coverage differences based on widowed status. ICT testified “on” both bills and is working with the authors on potential revisions. HB 4392 is the House companion to Senate Bill 1238, which has passed the Senate.
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House Bill 2741 (Martinez Fischer) – Seeks to ban the use of credit scoring in insurance. ICT and other trades testified in opposition, defending credit scoring as an actuarially sound and predictive underwriting tool. Rep. Wharton echoed this position from an agent’s perspective.
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House Bill 3021 (Smithee) – Implements the Office of Public Insurance Counsel’s (OPIC) credit scoring notice recommendation (companion to SB 1644). ICT testified “on” the bill and is working to align the language with the national model.
The committee also voted out House Bill 1576 (Oliverson), which establishes a state grant program for hurricane and windstorm loss mitigation. ICT testified in support of this bill at the hearing last week.
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 DWC Spring 2025 Texas Comp Update NewsletterÂ
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The latest Texas Comp Update is now available on the TDI website, offering resources for those supporting injured workers in Texas. This issue features updates on AMA Guides to Impairment studies, designated doctor exam tips, new training opportunities, DWC modernization tools, the 2025 Texas Workers’ Compensation Conference, Lone Star Award winners, and more. Visit tdi.texas.gov to read the full newsletter.
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Explore the Latest Issues Shaping Texas Insurance at the 2025 ICT Symposium
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Join us Sept. 17–18 in Austin for the 2025 ICT Property & Casualty Insurance Symposium. This must-attend event features insights on the 2025 legislative session, litigation reform, wildfire risk in Texas, and Dr. Robert Hartwig’s popular economic outlook. Speakers include industry leaders, legal experts, and state officials. Don’t miss two days of timely topics, networking and policy discussions. Hosted by the Insurance Council of Texas.
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📍 Austin, Texas | 📅 Sept. 17–18
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More details coming soon!
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📅 Registration Open: Sept. 16–17,
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Join us in Austin for the 2025 ICT Workers' Compensation Conference! Explore the latest in Texas regulatory updates, AI in claims, telemedicine, Total Worker Health, and ethics in decision-making. With expert insights and forward-looking sessions, this event is a must for claims professionals, attorneys, and risk managers. Hosted by the Insurance Council of Texas. Register Now!
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 Industry News:Â
April US floods & SCS to drive hundreds of millions in insured losses: Aon
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Historic flooding and severe weather from April 2–7 caused widespread destruction across the Mississippi River Valley, leading to significant economic impacts. Aon reports insured losses are expected to reach into the hundreds of millions of dollars, with Kentucky, Tennessee, and Arkansas among the hardest-hit states. Torrential rain, flash floods, tornadoes, and storm-related infrastructure damage affected thousands of residents and businesses.
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Key Points:
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Heavy Rainfall and Flooding:Â Persistent storms along a stalled front dumped over a foot of rain in some areas, with Benton and Hickory, Kentucky, recording more than 15 inches.
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Severe Weather and Tornadoes: The Storm Prediction Center received over 340 storm reports, and the National Weather Service confirmed 128 tornadoes between April 2–7.
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Widespread Impact:Â Kentucky, Tennessee, and Arkansas experienced major flooding, rescues, boil water notices, and infrastructure damage. In Tennessee, an EF-3 tornado destroyed more than 100 structures in McNairy County.
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Fatalities and Displacement:Â At least 25 deaths were reported, with hundreds rescued or evacuated. Thousands of homes lacked clean water or power as of April 10.
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Economic Toll:Â Aon projects insured losses in the hundreds of millions of dollars, with potential for further increases as damage assessments continue.
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 Industry News:Â
$337 billion, two-year budget gets Texas House approval
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The Texas House approved a $337 billion two-year budget after a 13-hour debate that saw hundreds of proposed amendments — from both Democrats and hardline conservatives — rejected. The budget, passed 118-26, includes major investments in teacher pay, border security and property tax cuts, but differs from the Senate version and will head to a conference committee. Lawmakers also passed a $12 billion supplemental budget to cover current cycle needs and bolster pensions, disaster response and university research.
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Key Points:
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Education and Vouchers: The House budget allocates $75.6 billion to K-12 schools, increases the basic per-student allotment, and sets aside $1 billion for school vouchers — a shift from prior sessions when such funding faced bipartisan resistance.
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Property Tax Relief:Â Roughly $51 billion, or 15% of the total budget, would go to property tax cuts. Some conservative efforts to increase that figure further were defeated on the floor.
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Border Security: The plan includes $6.5 billion for border security, mainly directed to the governor’s office, Texas Military Department, and Department of Public Safety, continuing heavy investment in Operation Lone Star.
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Amendments and Debate: Of nearly 400 budget amendments filed, only 25 passed. Notable changes include increased funding for the state’s Alternatives to Abortion program and a study on clergy child abuse, while efforts to defund school vouchers, reallocate border funds, and curb university DEI programs were rejected or sidelined.
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Next Steps: The House and Senate must reconcile budget differences in conference committee negotiations before final approval and submission to the governor, who may still veto specific items.
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 Industry News:Â
Roof Repair and Replacement Costs Up Nearly 30% Since 2022: Verisk
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The cost of roof repair and replacement in the U.S. reached nearly $31 billion in 2024, reflecting a 30% increase since 2022, according to Verisk. Wind and hail were the primary causes of these losses, which accounted for over a quarter of all residential claim value. Verisk’s report highlights the impact of weather, inflation, and new construction on roof damage and emphasizes the role of roof age in claim frequency and cost.
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Key points:
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Roof repair costs totaled nearly $31 billion in 2024, up nearly 30% from 2022.
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Wind and hail were the main contributors, driving more than half of residential claims.
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Roof age is closely linked to loss frequency, with older roofs, especially asphalt shingles, more likely to fail.
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Asphalt shingles are used on 80% of U.S. roofs, but their lifespan varies significantly depending on regional weather conditions.
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Data-driven insights suggest that 29% of U.S. homes with asphalt shingles have less than four years of useful roof life, potentially increasing damage during severe weather events.
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 Industry News:Â
Auto Insurance Rates Are Calming Down. What It Means for Geico, Progressive Earnings.
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Subscription Required -Â After two years of sharp increases, auto insurance rates are expected to moderate in 2024, helping ease pressure on consumer prices. The industry has rebounded from losses in 2022 to strong underwriting profits, with major insurers like Progressive and Geico reporting margins well above targets. Analysts and executives say the market is stabilizing, with some rate reductions already filed in states like Florida.
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Key points:
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Auto insurance rates are stabilizing after rising 20% in 2023, with some insurers now filing for rate reductions.
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Industry profitability returned in 2024, with underwriting profits of 8.5% of premiums, compared to losses in 2022.
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Progressive and Geico posted record profits, leading executives to anticipate less need for future rate hikes.
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Auto insurance has significantly impacted inflation, contributing about 10% of the CPI increase over the past year.
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Regulatory and political pressures may encourage insurers to lower rates, though some caution remains due to past 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: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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