News for the week of September 23, 2024
|
|
As homeowners pick up the pieces after Deer Park pipeline fire, they now turn to insurance claims
|
Rich Johnson, director of communications for the Insurance Council of Texas, emphasized the importance of homeowners submitting insurance claims quickly after the Deer Park pipeline fire. Johnson advised residents to document all damage with photos and videos. He explained that while insurance companies will act on behalf of policyholders, the determination of the responsible party could take time. Johnson also reminded displaced families to save receipts for food and housing, as they might be eligible for reimbursement depending on their policies. Homeowners like Walter Romero continue to wait for updates.
Read More>>
|
ICT Attends Dallas RIMS Risk Roundup
|
Davida Redwine, Member Services Manager, represented the Insurance Council of Texas (ICT) at the 2024 Dallas RIMS Risk Roundup as an exhibitor and happy hour sponsor. The event provided an excellent opportunity to engage with ICT members, industry colleagues, and past ICT Education Foundation scholarship winners. Davida hosted the ICT exhibit, featuring the popular “Match the Ducks to Win 100 Bucks” carnival game, which was a hit. Notable moments included meeting UNT student Karine Chalhoub and reconnecting with former scholarship recipient Esequiel Nathal, now with Compass Risk Services.
|
Rich Johnson Promotes Insurance Careers at Texas Southern, UH, and UH-Downtown
|
Rich Johnson, Insurance Council of Texas
|
Rich Johnson from the Insurance Council of Texas recently spoke with students at Texas Southern University, University of Houston - Main, and the Gamma Iota Sigma Chapter at the University of Houston - Downtown. He discussed career opportunities in insurance, the Texas P&C market, and the ICT Education Foundation scholarships. Special thanks to Nick Kapatos, Felix Ayadi, Germaine Gray, and Pamela Huhrley for their dedication to shaping future industry leaders. Donate to support the next generation here:
Click here for more information about the ICT Education Foundation.
|
We want to Hear From You - Event Topic Survey
|
The Insurance Council of Texas (ICT) invites members to participate in a brief survey to help shape future events and webinars. Your feedback ensures we cover the subjects most relevant to you, and deliver them when you need them most. Share your insights and ideas to enhance upcoming ICT programming. Complete the survey today and influence our content!
Take Survey>>
|
DWC Finalizes FY 2025 Compliance Audit Plan
|
DWC has released its annual Compliance and Investigations audit plan for the fiscal year ending August 31, 2025. The audits will review the accuracy and timeliness of insurance carriers' handling of lifetime income and death benefits, medical bills, and initial Temporary Income Benefits (TIB) payments. Each review will use random claim samples to assess whether carriers accurately calculated payments, reported claim data, and processed medical bills promptly. Insurance carriers will be required to submit relevant documentation for claims dating back to 2017 for benefits, and for billing and TIB payments from 2024, to ensure compliance with DWC standards.
The complete audit plan can be found here.
|
Legislative News & Updates
|
House State Affairs Committee Holds Hearing on Wildfires and Insurance Affordability
|
The House State Affairs Committee met September 17 to hear invited testimony on their interim charges regarding wildfires and the affordability of insurance. ICT provided testimony during the discussion on insurance affordability, and documents providing an overview of the P&C market and factors affecting home and auto insurance rates were distributed to the committee before and during the hearing.
|
Some things to note from the hearing:
|
Wildfire charge and 2604 grant program
Testimonies were provided by representatives from various state agencies, including officials from the Railroad Commission, Public Utility Commission, Division of Emergency Management, and Commission on Environmental Quality; industry and safety leaders from the Department of Public Safety, Forest Service, Department of Insurance, and firefighters’ associations; utility executives; broadband experts; and landowners from rural areas. The committee discussed revising the 2604 grant program for Volunteer Fire Departments, which is funded by an annual assessment on property and casualty insurers, emphasizing the need to reconsider the current $30 million funding cap. This could affect future insurer assessments.
|
Affordability of insurance discussion
Three panels provided testimony on the affordability of insurance charge. A panel with TDI Commissioner Cassie Brown, TDI Deputy Commissioner of P&C Lines Mark Worman, and OPIC Public Counsel David Bolduc opened the discussion. Commissioner Brown provided an overview of the Texas market noting that the Texas market remains competitive and highlighting losses for the industry. Industry representatives from TCAIS, ICT, and NAMIC, as wells as Texas Watch, AARP, and Oncor (transmission and distribution electric utility) also provided testimony.
Key points from the discussion included:
- TDI’s handling of rate filings - The committee asked TDI how often rates are disallowed. Commissioner Brown noted that 75% objected to but none disapproved because companies work with TDI to clarify or amend their filings.
- Concerns that insurers are exiting Texas - Commissioner Brown addressed concerns about insurers exiting Texas, noting that 8 companies have entered the market, 15 applications are pending, while only 4 companies have left impacting 11,000 residential policyholders. It is important to note that there are almost 8 million homeowner multiperil policies and 160 companies writing homeowners multiperil policies in Texas.
- AI and modeling - The conversation also touched on AI replacing actuaries in modeling and the impact of sustained losses on insurers' financial strength.
- Impact on certain sectors of the population - AARP raised concerns about insurance rate transparency for seniors, while Oncor highlighted the potential rise in utility bills due to insurance cost increases. There was also discussion on the impact on churches and school districts.
- Call to action for solutions - Chairman Hunter called for solutions from all the panelists ahead of the Committee's report to the legislature.
ICT will continue to engage with committee members and monitor this charge.
|
House and Senate Committees Address Autonomous Vehicles and ESG Policies in Interim Hearings
Two House committees with interim charges that ICT is monitoring met this week.
- Senate Transportation - The committee heard testimony on autonomous vehicles, with industry representatives highlighting Texas as a hub for AV trucking and discussing regulatory recommendations, including AV license suspension, registration reviews, and on-demand transportation networks.
- House Pensions, Investments, and Financial Services - The Committee heard testimony on a variety of interim charges including their charge on ways in which environmental, social, governance (ESG) policies are contradictory to fiduciary duties and the resultant detrimental effect on investors. Robert Gordan from the American Property Casualty Insurance Association (APCIA) testified on the issue of ESG investments, stating that they aim to avoid being pressured into pro or anti-ESG positions that conflict with their fiduciary responsibilities. He also raised concerns about activists who exploit the system by holding minimal shares to push lawsuits against companies, impacting long-term financial stability. During the discussion committee members raised the question about insurance rates increasing to him.
During the meeting, some committee members referenced a report produced by the Texas Association of Business (TAB) which found that anti-ESG laws are costing the state hundreds of millions in lost economic activity and more than 3,000 full-time jobs. TAB's press release with links to the study can be found here.
|
P&C Industry News & Updates
|
|
Industry Critiques Trump’s Auto Insurance Rate Data, Promise to Cut Premiums
|
Former President Donald Trump’s claim of a 73% increase in auto insurance rates and his promise to cut it in half sparked criticism from the insurance industry. Experts, like economist Robert Hartwig, noted the lack of credible data supporting the figure. Auto insurance rates are up 16.5% in the past year, and experts emphasized that insurance is regulated by states, not the federal government.
To read more, click here.
|
|
Republicans who want to oust Texas House Speaker Dade Phelan unanimously back state Rep. David Cook
|
In the most concerted attack to date on Republican Texas House Speaker Dade Phelan from within the GOP House ranks, 48 representatives and nominees for House districts selected Rep. David Cook as their favored House speaker Friday. The group includes four who dropped their bids for speaker in order to consolidate support around a single candidate.
To read more, click here.
|
Inflation explained: As material, labor costs rise, so do insurance premiums
|
The rising costs of raw materials, auto parts, and medical care are driving up home and car insurance rates. Inflation has increased repair costs for homes and vehicles, with technology in modern cars adding to the complexity and expense of repairs. Bad driving habits from the pandemic and severe weather-related claims have also worsened the situation. While state regulators, like Pennsylvania’s Insurance Department, aim to curb excessive rate hikes, inflation continues to impact insurance costs across the board.
To read the full article, click here.
|
Download the ICT Member Plus App!
|
ICT Reports & Publications
|
|
