Top Texas P&C News from the Week
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ICT's Weekly Legislative Roundup

 House Insurance Committee Takes Up Prior Approval Legislation 

 

Hearings for this week:

On April 30, the Texas House Insurance Committee held a hearing on House Bill (HB) 5519, authored by Representative Martinez Fischer. The bill would require prior approval for residential property and personal auto insurance rate changes—whether increases or decreases—exceeding 5%, among other regulatory changes.

 

Although the hearing was abbreviated due to scheduling constraints, the insurance industry was afforded an opportunity to raise concerns and emphasize that prior approval is not an effective solution to address affordability challenges in Texas.

 

HB 5519 contrasts with Senate Bill (SB) 1643, filed by Chairman Schwertner and already passed by the Senate, which applies to rate changes of +/-10% in both personal and commercial lines. Key provisions of HB 5519 include:

  • Applicability to residential property and personal auto lines with rate changes exceeding +/-5% from the previously filed rate.

  • A 90-day timeframe for the Texas Department of Insurance (TDI) to approve or disapprove filings, with an optional 90-day extension for good cause; notably, no "deemer" provision is included in the current draft.

  • Entitlement to a hearing upon written request within 30 days of disapproval.

  • Authorization for the Commissioner to amend, suspend, or revoke an approved rate under certain conditions.

While HB 5519 and SB 1643 reflect differing approaches, both signify a shift toward more restrictive rate regulation. SB 1643 remains the more imminent concern, as it is already pending in the House Insurance Committee and eligible for consideration through May 27. ICT continues to engage with lawmakers to oppose legislation that would destabilize Texas’s competitive rate environment.
 

 Legislative Updates from the House Insurance Committee 

In addition to HB 5519, the House Insurance Committee met on April 30 and held two formal voting sessions on April 28 and May 2. Below are highlights from those proceedings:

CSHB 854 (Garcia Hernandez) – Replacement Cost Coverage Payments

CSHB 854 was voted out of committee on May 2. The bill requires insurers offering residential property policies with replacement cost coverage to pay at least 80% of the estimated cost upfront—before any work is performed. A committee substitute modified the requirement, stating that the initial payment may not be reduced by more than 20%. ICT testified in opposition. This bill has passed the House during the last two sessions but has not advanced in the Senate.

SB 213 (West; Sponsor: Dean) – Prohibition on Insurance Tying Practices

SB 213 prohibits the practice of "tying," where the purchase or renewal of one insurance policy is conditioned on the purchase of another. The engrossed version includes several ICT-recommended revisions, such as excluding umbrella policies and relocating the provisions from Chapter 541 (Unfair Trade Practices) to Chapter 551. ICT testified "on" the bill, emphasizing support for language that would limit the tying prohibition to renewals and clarify that a person cannot be required to purchase coverage for an asset they do not own (e.g., requiring auto insurance from someone who does not own a vehicle).

HB 4092 (Morgan) – Presuit Notice Reform

HB 4092, which seeks to reverse the Safeco v. Rodriguez decision and modify presuit notice requirements under Chapter 542A, was also heard. ICT testified in opposition.
 

 Priority Legislation Advances in the House and Senate 

Significant movement occurred this week on key bills supported by and monitored by ICT:

HB 1576 (Oliverson) – FORTIFIED Grant Program

On April 30, the House passed HB 1576, which establishes a grant program to help homeowners retrofit properties to meet the IBHS FORTIFIED standard. A proposed floor amendment—requiring TDI to mandate a specific discount for qualifying homes—posed a concern. ICT worked with Representative Oliverson to offer an alternative amendment that preserves rating flexibility by requiring a discount or rate credit filing without a mandated amount. Both the discount and the program are contingent on state funding.

SB 2530 (Middleton) – TWIA Omnibus Reform Bill

On May 1, the Senate unanimously passed SB 2530, a TWIA reform package that originally included:

  • Exempting TWIA from premium and maintenance taxes (this provision was removed by floor amendment).

  • Prohibiting TWIA employees and board members from lobbying.

  • Requiring TWIA’s physical relocation to a first- or second-tier coastal county.

  • Annual adjustment of Class 1–3 member assessments based on TWIA’s probable maximum loss (PML).

  • Reducing the PML benchmark from 1:100 to 1:50.

  • Requiring use of the lowest PML model approved by the Commissioner.

  • Excluding loss adjustment expenses (LAE) from PML calculations.

  • Modifying TWIA board composition.

A floor amendment also added a requirement that at least one TWIA board member be an independent, licensed property and casualty agent who is actively selling windstorm and hail coverage and is not a captive agent.

Additional Bills of Note

  • SB 1238 (Kolkhorst; Sponsor: Morgan): Prohibits discrimination based on widowed status in insurance. The House adopted a floor amendment to exclude title insurance. The bill returns to the Senate, where concurrence is anticipated.

  • HB 2213 (Johnson): Amends TWIA board composition. Two adopted floor amendments require that one member be an independent, licensed property and casualty agent (not a captive agent) and that all members be Texas residents. The bill heads to the Senate without a companion measure.

  • HB 2517 (Barry): Exempts TWIA and the FAIR Plan from premium and maintenance taxes, in alignment with a TWIA biennial recommendation.

  • HB 2518 (Barry): Prohibits TWIA from entering into premium financing arrangements, also based on a biennial recommendation.
 

 ICT Supports Houston RIMS Astros Game Day 

The Insurance Council of Texas was proud to sponsor and participate in the Houston RIMS Astros Game Day on April 30, an event that brought together professionals from across the risk and insurance sectors for an afternoon of networking and industry engagement.

 

ICT team leadership Albert Betts, Executive Director, and Davida Redwine, Member Services Manager, were on-site at the Grotto Downtown pre-event to connect with members of the Houston risk community and share ICT’s continued commitment to supporting and strengthening the property and casualty industry in Texas.
 

Early Bird Registration

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.

 

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?
 

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.

 

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
 
 
 

 ICT in the News: 
Texas lawmakers want more rules for home insurers. Critics warn they won't guarantee lower prices

Houston Chronicle

The Insurance Council of Texas (ICT) emphasized that the state’s rate review process is already rigorous and protects consumers through detailed scrutiny of filings. ICT’s Richard Johnson called claims of unchecked rate hikes misleading, noting most filings are questioned, adjusted, or withdrawn before approval. As lawmakers debate added oversight, ICT maintains that the existing system balances consumer protection with a competitive market.

 

Key Points: 

  • Proposed Changes: Lawmakers are considering requiring state approval for home insurance rate hikes exceeding 5% or 10%, depending on the bill, in response to spiking premiums and frequent natural disasters.

  • Consumer Concerns: Critics argue these proposals may not lower prices, as insurers can still submit multiple small increases that add up to more than the threshold.

  • Historical Legal Fears: Past lawsuits from State Farm and Farmers had a chilling effect on the Texas Department of Insurance (TDI), which hasn't denied a single rate filing since 2017.

  • Regulatory Effectiveness: While TDI rarely rejects filings, it requests changes in most cases; the agency says these reviews saved consumers $7 million in 2024 — a fraction of the $19 billion in premiums.

  • ICT’s Position: The Insurance Council of Texas defends the current "file-and-use" system, asserting it is transparent and highly regulated, with extensive reviews that prevent unchecked rate increases.
 

 ICT in the News: 
Texas Senate approves bill on regulations regarding insurance rates changes

Insurance Business

The Texas Senate has approved a bill that would require state approval for certain insurance rate changes. Senate Bill 1643 would mandate prior approval for any rate adjustment of 10% or more, a change from the current file-and-use system. The bill now heads to the Texas House for further consideration. ICT submitted testimony against this bill.

 

Key Points:

  • SB 1643 would require insurance companies to get approval from the Texas Department of Insurance for rate changes of 10% or more.

  • Rate filings not acted on within 30 days would be automatically approved, unless the change is a 10% or greater increase.

  • The bill would take effect Sept. 1, 2025, and apply to policies beginning in 2026.

  • Supporters say the bill would protect consumers from sharp premium increases without oversight.

  • Industry groups warn the change could disrupt market competition and the link between rates and actual loss costs.
 

 Industry News: 
Trump tariffs are putting even more pressure on Texas' soaring homeowner insurance premiums. Here's why.

MSN

Homeowners insurance premiums in Texas could rise even faster this year due to proposed tariffs backed by former President Donald Trump, a new report finds. A study by Insurify projects that tariffs on key building materials would drive average annual premiums up to $6,718 by the end of 2025. Texas already faces some of the highest homeowners insurance rates in the country, driven by inflation, natural disasters and climate-related risks.

 

Key Points:

  • Without tariffs, average Texas homeowners insurance premiums are expected to rise by about $500 this year; with tariffs, that increase could reach $713.

  • Tariffs on materials like Canadian lumber and Mexican lime would raise rebuilding and repair costs, leading insurers to pass higher costs onto consumers.

  • Texas has experienced 68 billion-dollar weather disasters in the past five years, causing $108 billion in damages and contributing to rising premiums.

  • Homeowners in regions such as Houston and coastal Texas are especially vulnerable due to high exposure to hurricanes, flooding, and other severe weather.

  • A recent survey found that 60% of builders report rising material prices due to tariffs, with an estimated $11,000 increase in the cost to build a home.
 

 Industry News: 
NCOIL discusses prior authorization reform efforts

Insurance News Net

The National Council of Insurance Legislators (NCOIL) hosted its largest-ever Spring National Meeting from April 24–27, drawing more than 400 attendees, including 85 legislators from 32 states. The event featured a robust agenda covering artificial intelligence, genetic testing, prescription drug affordability, and other emerging insurance issues. NCOIL leaders highlighted the record-setting participation as a sign of the organization's growing national impact and momentum heading into the rest of 2025.

 

Key Points:

  • Historic Participation: The Spring Meeting marked NCOIL’s highest attendance to date, with 408 participants, including 23 first-time legislators and 14 state insurance departments.

  • Timely Policy Discussions: Committee sessions tackled a range of issues including AI in insurance, genetic testing in underwriting, prescription drug affordability boards (PDABs), and prior authorization reform.

  • New and Revised Model Laws: Multiple model acts were introduced or adopted, including the NCOIL Rental Home Marketplace Guarantees Model Act, the Prior Authorization Reform Model Act, and the Experience Rating Modification Model Act.

  • Federal Collaboration: U.S. Secretary of Health and Human Services Robert F. Kennedy Jr. addressed attendees to announce a new state-federal partnership on sickle cell treatment, marking the first time a sitting cabinet member participated in an NCOIL event.

  • Forward Planning: A strategic SWOT analysis session and committee discussions on federal tax initiatives, cannabis insurance, flood insurance, and health savings accounts underscored NCOIL’s proactive approach to shaping state and national insurance policy.
 

 Industry News: 
“Nuclear Verdicts” are Driving Up Consumer Costs in Texas

PBOG

A new study by The Perryman Group (2025), commissioned by Citizens Against Lawsuit Abuse (CALA), shows that excessive litigation and “nuclear verdicts” are significantly increasing consumer costs and straining the insurance market in Texas.

Key Points:

  • $1,725/year – Average added cost per Texan due to excessive lawsuits, above the national average of $1,666.
  • 207 nuclear verdicts – Texas led the nation from 2009–2023 in jury awards over $10 million, totaling $45+ billion.
  • Economic impact – Annual losses include $33.6B in direct costs, $52.6B in lost output, and 453,426 jobs lost.
  • Senate Bill 30 – Proposed legislation would limit inflated medical billing and non-economic damages .
  • Insurance impact – Rising verdicts drive up liability insurance premiums, affecting affordability and market stability.
 

 Industry News: 
An Insurance Crisis Compounded by Climate Change Threatens the Broader U.S. Economy

Industry Climate News

Climate change, rising insurance rates and the housing crisis are converging to threaten the stability of homeownership in the U.S. Experts warn that without urgent reforms, these issues could ripple across the economy and destabilize the housing market.

 

Key Points:

  • Rising insurance costs are outpacing inflation and becoming a widespread concern for homeowners, contributing to mortgage delinquencies, unaffordable housing, and stalled development.

  • Climate-related disasters are increasing in frequency and intensity; from 2018 to 2022, major disaster declarations nearly doubled compared to prior decades.

  • The insurance industry lacks transparency in rate-setting and has been slow to respond to climate risk, pushing homeowners toward unreliable or bankrupt-prone insurers.

  • Limited federal recovery funding means only a small fraction of homes damaged by disasters like Hurricane Helene can be rebuilt, worsening the housing crisis.

  • Cuts to resilience programs and environmental protections under previous administrations have hampered efforts to mitigate disaster risk, leading to even higher insurance rates and financial strain.
 

 Industry News: 
Natural catastrophes: insured losses on trend to USD 145 billion in 2025

Swiss Re

Swiss Re's latest sigma report projects that insured losses from natural catastrophes will reach $145 billion in 2025, marking a nearly 6% increase from the previous year and positioning 2025 as one of the costliest years on record for insured catastrophe losses. This upward trend is driven by climate change, urban expansion into high-risk areas, and increased asset accumulation in vulnerable regions.

 

Key Points:

  • Record-High Insured Losses: Insured losses from natural disasters are expected to total $145 billion in 2025, up from $137 billion in 2024, making it one of the most expensive years on record for such losses. 

  • Significant Impact of Wildfires: The Los Angeles wildfires earlier in 2025 are estimated to cause $40 billion in insured damages, significantly contributing to the overall increase in losses. 

  • Long-Term Loss Growth Trend: Since 1994, insured losses from natural catastrophes have grown at an average annual rate of 5.9%, outpacing global GDP growth of 2.7%, indicating a doubling of the relative loss burden compared to GDP over the past 30 years.

  • Rising Total Economic Losses: Total losses from natural catastrophes, including uninsured damages, reached $318 billion in 2024, up from $292 billion in 2023 and significantly above long-term averages. 

  • Need for Enhanced Mitigation and Adaptation: Swiss Re emphasizes the importance of investing in mitigation and adaptation measures to address the increasing frequency and severity of natural catastrophes, highlighting the role of climate change and urban development in exacerbating losses.
 
 
 
 

Check out all things ICT!

Call for Speakers

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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