Albert Betts, ICT's Executive Director, recently contributed to an interview for this article. As Hurricane Francine narrowly missed Texas, concerns about the Texas Windstorm Insurance Association's (TWIA) financial stability have escalated. TWIA’s reserve fund is depleted after paying $450 million in losses from Hurricane Beryl. With potential storms ahead, TWIA may need to issue costly bonds, further burdening policyholders and risking insurance market instability. TWIA's report to lawmakers suggests reforms, including statewide assessments and restructuring debt mechanisms, to stabilize its funding amid rising exposure and increasing insurance costs. 

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Rich Johnson from the Insurance Council of Texas and John Henle, president of the ICT Education Foundation Board of Trustees and Berkley Southwest, spoke with students at the University of North Texas Risk Management and Insurance program and UT-Dallas’ Naveen Jindal School of Management. They discussed career opportunities in insurance, the Texas P&C market, and ICT Education Foundation scholarships. Special thanks to Steven Haynes and Clarissa Hutkowski for their dedication to educating future industry leaders. 

Click here for more information about the ICT Education Foundation.

The Texas Department of Insurance (TDI) has issued an initial order proposing adjustments to the Texas Windstorm Insurance Association's (TWIA) maximum liability limits for policies effective January 1, 2025. These changes will not impact TWIA rates. A public hearing is scheduled for 2 p.m. CT on September 30, 2024, with a final order to follow. Comments can be submitted until 5 p.m. CT on the same day to ChiefClerk@tdi.texas.gov.  

For additional resources visit TWIA's maximum liability limits filing.

Several new candidates have entered the race for Speaker of the Texas House. On Friday, September 13, Rep. John Smithee (R-Amarillo), a former chair of the House Insurance Committee and current member of State Affairs, announced his candidacy. He joins fellow Republicans Shelby Slawson (Stephenville), Tom Oliverson (Cypress), James Frank (Wichita Falls), and David Cook (Mansfield) in challenging current Speaker Dade Phelan, who has held the position since 2021.

On the Democratic side, Rep. Ana-María Rodríguez Ramos (Richardson) declared her candidacy on September 15. With Democrats holding 64 of the 150 seats in the Texas House, Rodríguez Ramos faces a steep challenge. The Speaker vote, requiring a majority of 76 votes, will take place on the first day of the 89th legislative session.

On Tuesday, September 10, Lt. Gov. Dan Patrick released a second set of interim charges for Senate committees, expanding on an earlier list of 57 items that focused on issues such as insurance, housing costs, school vouchers, property tax relief, and power grid reliability. As part of the 2024 additional interim legislative charges, committees including Business and Commerce, Criminal Justice, Education, Finance, Health and Human Services, the Higher Education Subcommittee, and State Affairs have been given new assignments.

The charges include conservative priorities such as conducting a review of diversity, equity, and inclusion (DEI) policies at higher education institutions to identify programs and certificates that may not align with state workforce needs, examining impeachment proceedings to ensure a fair and transparent process, and studying the rules and thresholds for runoff elections.

They also include:

• an examination of the impact of the Federal Trade Commission's final rule on non-compete agreements in Texas (Senate Business & Commerce Committee)
• evaluation of trends in financial crimes in Texas, including their impact on consumers, businesses, and local economies, assessing the role of transnational criminal gangs and the Financial Crimes Intelligence Center (Criminal Justice Committee)
• examination of emergency preparedness and response protocols for commercial residential settings for the elderly and individuals with intellectual disabilities during severe weather events, and recommendation of any necessary measures to enhance protection for these vulnerable populations (Health and Human Services Committee)

The full list can be found here.

Hurricane Francine's losses for the insurance industry are estimated to remain in the low single-digit billions, according to Gallagher Re. Wind and water-related damages could cost insurers around $1 billion but may increase if the storm moves closer to New Orleans. The hurricane shut down a quarter of Gulf oil and gas production and prompted evacuations across Louisiana. While estimates may change after landfall, the current projections suggest the losses should be manageable, reassuring an industry already facing significant weather-related claims.

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State Farm reports a significant decrease in catalytic converter theft claims during the first half of 2023, with 14,500 claims compared to over 23,000 in the same period last year. This marks the first decline since 2019. Total payouts reached $41.7 million, with an average claim of $2,900. California, Texas, and Illinois topped the list of states with the most claims.

State Farm encourages drivers to prevent theft by parking in well-lit areas, installing alarms, and engraving their VIN on the converter. State Farm reported they had 1,450 claims totaling $5.1M in the first half of 2023.

To combat theft, thanks to a generous grant from State Farm, ICT created the "Lock it Down" campaign, a loss prevention campaign focused on educating the public to keep their vehicles secure and reduce break-ins and catalytic converter thefts. 

To read more, click here.

Austin Energy and Pano AI have deployed a new AI-driven wildfire detection system across Central Texas, using 360-degree cameras to rapidly identify smoke and alert authorities. The system covers 437 square miles, including parts of Travis, Hays, Bastrop, Williamson, and Burnet counties, enhancing emergency response times. With climate change increasing wildfire risks, Austin ranks high for homes at risk of fire damage. This technology helps protect the community and ensure reliable electric service by providing real-time imagery and location data for quicker containment of wildfires. 

To read the full article, click here.