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Senate Business & Commerce Committee Holds Hearing on Feb. 18
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The Senate Business & Commerce Committee, chaired by Sen. Charles Schwertner, R-Georgetown, met on Feb. 18 to consider bills. The bills heard included SB 495 by Sen. Kevin Sparks, R-Midland, which would restrict the Texas Department of Insurance (TDI) from adopting or enforcing rules based on environmental, social, and governance models unless explicitly authorized by statute. ICT did not take a position on the bill and did not testify.
During the hearing, some committee members raised concerns that the bill’s provisions on governance and accounting methodology could conflict with accreditation standards. Jamie Walker, TDI’s deputy commissioner of financial regulation, testified that the broad language could affect TDI’s ability to maintain National Association of Insurance Commissioners (NAIC). Sparks clarified that this was not his intent, and his office is working with TDI to address the issue. The bill remains pending in committee.
You can read a recap of the hearing here. As the session progresses, you can find weekly recaps of committee hearings, including ICT bills of interest, on the ICT Member Info Hub.
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Companies Shouldn’t Force Consumers to Buy Home and Auto Insurance Together
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The Texas Department of Insurance (TDI) is taking steps to ban “tying arrangements,” a practice that forces consumers to buy both home and auto insurance together. The proposed rule aims to protect consumer choice and prevent unfair competition among insurers.
- Ban on Tying Arrangements: Insurers and agents would no longer be allowed to require consumers to purchase both home and auto policies together
- Consumer Protection: TDI Commissioner Cassie Brown emphasized that the rule ensures consumers can shop for the best deals
- Choice Over Bundling: The rule does not affect voluntary bundling, where consumers opt for multi-policy discounts
- Fair Competition: TDI believes tying arrangements create an unfair advantage for some insurers
- Public Hearing: A hearing on the proposed rule is scheduled for March 10 at 10 a.m. CT, with public comments encouraged
READ MORE
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Mark your calendars for March 13! Clark and Seth from RedZone are diving into the latest developments in wildfire risk assessment. They’ll cover everything from new approaches to risk scoring, to strategies for managing accumulations during the quoting process. Plus, they'll discuss the critical role homeowners play in mitigation and how private insurance response programs are making an impact. This session is a great opportunity for insurers looking to refine their strategies and better support policyholder resilience, especially in the Texas market. Be sure to register and save your spot!
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ICT in the News: Texas pushes for state auto insurance program
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Texas lawmakers have introduced Senate Bill 1246, which would establish a state-run auto insurance option aimed at providing more affordable coverage. The program, administered by the Texas Department of Insurance (TDI), would offer both mandatory liability and optional comprehensive coverage to eligible drivers. The bill comes amid rising insurance costs and concerns about accessibility for millions of Texans. While ICT is mentioned, ICT was not asked for comment on this story.
- State-Run Insurance Option: The bill proposes a publicly managed auto insurance program to compete with private insurers and increase affordability.
- Administration & Funding: TDI would oversee the program, with funding from policyholder premiums, state contributions, and grants.
- Low-Income Support: A sliding-scale premium structure would be implemented to assist low-income drivers, with TDI ensuring fair pricing through risk-based adjustments.
- Market Oversight: Biennial assessments would measure the program’s impact on premium rates, consumer satisfaction, and uninsured motorist rates.
- Industry Context: The bill emerges as Texas faces broader insurance challenges, including legal action against insurers over alleged data misuse affecting millions of drivers.
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ICT in the News: Insurance Business America teams up with
leading associations
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Insurance Business America
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Insurance Business America (IBA) is excited to collaborate with the Professional Insurance Agents (PIA), the California Insurance Wholesalers Association (CIWA), and the Insurance Council of Texas Education Foundation for the Rising Stars 2025 special report. This initiative will highlight exceptional young professionals (aged 35 and under) making a meaningful impact in the insurance industry.
Key Points:
- IBA Rising Stars 2025 will recognize young professionals shaping the insurance industry's future.
- ICT Education Foundation and ICT have awarded over $1.5 million in scholarships since 2002 to support Texas students pursuing insurance careers.
- PIA has supported independent insurance agents for 90 years, advocating for members across all U.S. states and territories.
- CIWA represents and promotes California’s wholesale insurance distribution system, ensuring ethical standards and a competitive market.
- Nominations are now open—submit today to help celebrate the industry’s next generation of leaders. Nominate someone today!
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Texas home insurance costs are skyrocketing. State leaders don’t have many solutions
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Texans are facing steep increases in home insurance premiums, driven by rising natural disaster risks, inflation, and industry dynamics. Homeowners like Kat and Giles Roberts have seen their premiums triple, with few affordable alternatives. Lawmakers are addressing the crisis, but proposed solutions may have limited impact.
- Escalating Costs: Texas homeowners pay an average of $3,973 per year for insurance—nearly twice the national average—and some, like the Robertses, are facing annual premiums of $12,000 or more.
- Legislative Action: The Texas Senate is considering bills to provide premium relief, strengthen consumer protections, and incentivize home-hardening efforts.
- Industry Challenges: Insurers cite increasing natural disasters, inflation, and costly lawsuits as reasons for premium hikes, with companies often paying out more in claims than they collect in premiums.
- Regulatory Differences: Unlike California, Texas allows insurers to raise rates before state regulators review them, making it difficult to challenge excessive increases.
- Last Resort Coverage: More homeowners are turning to the Texas FAIR Plan, an insurer of last resort, as private insurance options become unaffordable or unavailable.
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Texas wants more affordable housing. Insurance costs are getting in the way.
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Rising insurance costs are straining Texas' affordable housing market, forcing developers to sell units and scale back new projects. Nonprofit affordable housing providers, unable to pass higher premiums onto renters, are particularly vulnerable, with some seeing insurance costs surge by 300% since 2020. The situation worsens a housing shortage, as Texas needs nearly 700,000 additional units to meet demand for low-income residents.
- Escalating Insurance Costs: Affordable housing developers in Texas are facing skyrocketing insurance premiums, with some properties seeing rates triple since 2020.
- Impact on Affordable Housing: Rising costs have led to a 20% decline in new affordable rental units built with federal tax credits from 2021 to 2023.
- Market-Rate vs. Affordable Housing: Unlike market-rate developers, affordable housing providers can't raise rents to cover rising costs, forcing them to cut expenses or sell properties.
- Statewide Crisis: Insurance rates for multifamily properties are rising three times faster than operating costs, with Houston seeing a 165% per-unit increase since 2020.
- Difficult Choices: Some nonprofits, like Avenue CDC, have sold off hundreds of units, shifting them to for-profit owners with no guarantees of continued affordability.
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Your auto insurance premium could rise with
proposed tariffs. Here's how much Texas drivers could pay.
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Proposed tariffs on imports from Canada and Mexico could further drive up auto insurance premiums and vehicle repair costs, a new Insurify study finds. The report warns that higher prices for replacement parts, combined with potential supply chain disruptions, could accelerate premium increases. In Texas, where rates are already high, drivers could see their insurance costs rise by nearly 9% if the tariffs take effect.
- Tariff Impact on Auto Insurance: A proposed 25% tariff on auto parts could push U.S. insurance rates higher, with projections of an 8% increase in 2025 instead of the previously expected 5%.
- Texas Drivers Affected: Texas drivers, who paid an average of $2,712 for full coverage in 2024, could see rates rise to nearly $3,000 in 2025 if tariffs are enacted.
- Rising Repair Costs: Auto parts make up 32% of those sold domestically, and tariffs could make repairs significantly more expensive, further increasing premiums.
- Nationwide Premium Surge: U.S. auto insurance rates have already risen sharply, with Texas premiums jumping 42% from 2022 to 2024.
- Similar Trend in Home Insurance: Tariffs on building materials, steel, and other supplies could also raise home insurance costs, mirroring trends in the auto market.
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P&C Insurance Industry Weathers Market Challenges in 2024
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The U.S. property and casualty (P&C) insurance industry remained resilient in 2024 despite $2.6 billion in underwriting losses and 27 billion-dollar weather disasters. AM Best projects continued improvement in 2025, with premium growth and investment income helping offset rising claims costs. However, challenges such as catastrophe losses, social inflation, and reserve deficiencies continue to pressure the industry.
- Weather-Driven Losses: Natural disasters caused over $200 billion in damages in 2024, with insurers covering about half of the losses; hurricanes Helene and Milton alone accounted for $37.5 billion in insured losses.
- Shifting Market Strategies: Insurers and reinsurers are tightening underwriting, increasing deductibles, and limiting coverage in high-risk areas to manage catastrophe exposure.
- Premium Growth & Investment Gains: Net premiums written rose 10% in 2024, with personal lines leading at 12.9%; investment income surged 18% to $85.4 billion due to higher interest rates.
- Legal & Reserve Pressures: Social inflation and litigation financing are driving up claims costs, with an estimated $18.8 billion deficiency in net loss reserves, particularly affecting casualty lines.
- Commercial Lines Stability: Despite ongoing challenges, commercial lines remained profitable, with a combined ratio of 97.0 and stable risk-adjusted capital projections for 2025.
- View the full AM Best report here.
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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: September 15-16, 2025
- 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.
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