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ICT's Weekly Legislative Roundup
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Key Deadlines Pass Determining Fate of House Bills
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Last week’s calendar set two crucial deadlines for House bills:
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Monday, May 12 — last day for House committees to report bills.
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Thursday, May 15 — last day for the full House to pass House bills.
Several property-and-casualty insurance measures moved forward, while others failed to advance and are likely dead for the session unless revived as amendments.
Bills That Passed the House
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HB 722 (Bucy) — Requires insurers to provide detailed written explanations for auto-appraisal and total-loss calculations. ICT opposed.
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CSHB 854 (Garcia Hernandez) — Mandates that insurers offering residential property policies with replacement-cost coverage pay at least 80% of estimated costs up front, before work begins. ICT opposed.
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HB 3388 (Paul) — Authorizes group property-and-casualty insurance.
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HB 3520 (Spiller) — Updates auto-liability insurance standards for transportation network company drivers.
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HB 3658 (Morgan) — Expands continuing-education requirements for insurance adjusters to include building-code instruction.
Bills That Died on the House Calendar
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HB 3569 (Barry) — Would have required insurers to contract with any licensed agent authorized to write a given line of business. ICT opposed.
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HB 2841 (Smithee) — Addressed TWIA underwriting and FORTIFIED home construction. ICT supported.
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HB 4401 (Vo) — Would have transferred MVCPA fee collection and enforcement to the comptroller. ICT initiative.
Bills Likely Dead Unless Amended Elsewhere
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HB 5519 (Martinez Fischer) — Required prior approval for residential and personal-auto rate changes exceeding ±5% and let the commissioner amend, suspend or revoke an approved rate under certain conditions.
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HB 946 (Garcia Hernandez) — Would have banned oral releases in personal-auto claims. Heard in House Insurance, left pending.
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HB 4062 (Morgan) — Sought to raise thresholds for policies classified as large risks exempt from form regulation. Scheduled for a hearing but pulled by the author.
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HB 4092 (Morgan) — Aimed to overturn Safeco v. Rodriguez and change pre-suit notice rules under Chapter 542A. Reported favorably but never reached the floor.
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HB 4268 (Morgan) — Required insurers to allow policyholders up to two years to recover withheld depreciation. Heard in committee, left pending.
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HB 2741 (Martinez Fischer) — Would have eliminated credit scoring in insurance underwriting. Heard in committee, left pending.
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HB 823 (Thompson) — Allowed estates to recover exemplary damages under the Texas Workers’ Compensation Act in cases of employer gross negligence or intentional harm. Never received a hearing.
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House Insurance Hearing on Regulatory Reform and TWIA Bills Rescheduled
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The House Insurance Committee postponed its hearing on major regulatory-reform and TWIA bills to Monday, May 19. The agenda now includes:
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SB 1642 (Schwertner/Dean) — Replaces the single insurance commissioner with a three-member commission.
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SB 1643 (Schwertner/Dean) — Imposes prior approval for rate changes exceeding ±10%.
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SB 2530 (Middleton/Paul) — Significantly alters TWIA funding by increasing assessments and revising the probable-maximum-loss calculation.
ICT distributed one-pagers opposing all three bills to committee members and met with Rep. Paul to outline concerns about SB 2530. The council previously testified against all three measures in the Senate.
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Senate Business & Commerce Committee Hearing Thursday, May 15
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The Senate Business & Commerce Committee met May 15 to consider several TWIA-related bills.
Highlight
Other bills heard (all left pending)
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HB 145 (King/Schwertner) — Provides utilities immunity for wildfire-related damages under certain conditions.
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HB 2517 (Barry/Hinojosa) — Exempts TWIA and the FAIR Plan from premium and maintenance taxes. Part of TWIA’s biennial recommendations. ICT supported.
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HB 2518 (Barry/Hinojosa) — Prohibits TWIA from using premium-financing arrangements. Another biennial recommendation.
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HB 2213 (Johnson/Middleton) — Changes TWIA board composition, requires all members to be Texas residents and allows an active independent agent to fill one industry seat.
All the bills were left pending
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Out to Alarm Texas Campaign Celebrates 20 Years 30,000 Smoke Alarms Distributed
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The Insurance Council of Texas (ICT) is marking 20 years of its Out to Alarm Texas campaign with a major milestone, more than 30,000 smoke alarms distributed across the state since 2005. In May 2025, ICT partnered with State Farm and local fire departments to deliver over 1,700 alarms, the largest single-year total in program history. Launched to reduce fire-related deaths and injuries, the campaign has expanded to involve over 90 fire departments statewide. Working smoke alarms cut fire-related death risk by 55%.
Click Here to Learn More or Get Involved
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Raymond Mauk Call for Nominations
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The Insurance Council of Texas is accepting nominations for the 2025 Raymond Mauk Leadership Award, which recognizes outstanding service and contributions to the Texas property and casualty insurance industry. Established in 1998, the award honors former Texas Fire Commissioner Raymond Mauk, a pioneer who helped shape the industry. Nominees may be active or retired professionals from across the industry. The recipient will be recognized during the awards and recognition portion of the ICT Symposium on Sept. 17, in Austin. Nominations are due by June 6.
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ICT Staff Giving Back
Volunteer at the Central Texas Food Bank
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ICT staff recently spent the day volunteering at the Central Texas Food Bank, where they helped sort and package over 5,000 pounds of fresh produce. The food will be distributed to families facing food insecurity across Central Texas. This hands-on effort reflects ICT’s strong commitment to community service and giving back. The Central Texas Food Bank is one of three charities ICT is supporting this year, along with Dell Children’s Medical Center and the Breast Cancer Resource Center in Austin.
Throughout the year, ICT employees volunteer their time, organize donation drives, and hold a variety of fundraisers to support these organizations and make a meaningful impact in the communities they serve.
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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?
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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
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Wildfire Prevention Co. (“WPC”) is Texas' first full-service wildfire-mitigation company. Established in the heart of the Texas Hill Country, WPC has a singular goal of safeguarding communities against the ever-growing threat of wildfire through prevention, protection, and mitigation efforts.
WPC offers a complete range of products and services aimed at helping clients prevent and recover from wildfires. These services include custom risk assessments of individual homes or entire neighborhoods, home hardening with ember-resistant vent installation, tree services, and land work. Additionally, WPC has partnered with industry-leader Perimeter Solutions to become the exclusive service provider in Texas of PHOS-CHEK Long-Term Fire Retardants.
By joining the Insurance Council of Texas, WPC aspires to partner with insurance companies to help both homeowners and member companies better understand and mitigate their wildfire risk.
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ICT in the News:
Is there a revolt in the Texas Legislature against outrageously high insurance premiums? Sort of
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Texas lawmakers are reacting to public outcry over rising home insurance premiums with a wave of proposed bills, but meaningful reform remains unlikely. The file-and-use system, which lets insurers raise rates without prior approval, is under scrutiny. The Insurance Council of Texas (ICT) is actively engaged at the Capitol, opposing overreaching proposals that could threaten market stability without addressing core cost drivers like claim losses.
Key Points:
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Rates Soaring: Texans are seeing insurance premiums double or even triple, prompting legislative attention.
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ICT Opposes SB 1643: ICT strongly opposes this bill, which would cap rate hikes at 10% but allow multiple increases annually—adding red tape without solving root issues.
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File-and-Use Targeted: Lawmakers are debating changes to the system. ICT defends it as essential for solvency and competition.
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Weak TDI Oversight Criticized: Media reports note TDI hasn’t denied a rate filing since 2017, drawing criticism despite insurers following state laws.
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Most Reform Bills Likely Dead: Proposals to ban credit scoring or limit annual increases are expected to stall before session’s end.
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ICT in the News:
Insurers use aerial images to decide policy renewals
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Insurers in Texas are increasingly using aerial and satellite images to assess property conditions and determine policy renewals—sometimes without notifying homeowners. While the technology offers cost savings and broader risk visibility, it has sparked privacy concerns and regulatory scrutiny. The Insurance Council of Texas (ICT) is actively monitoring the issue, advocating for balanced use of technology that improves efficiency without sacrificing fairness or transparency.
Key Points:
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Aerial Images in Use: Insurers are relying on third-party vendors like Nearmap and CAPE Analytics to capture and analyze overhead images of homes, sometimes using AI to assess risk indicators like roof damage or overgrown trees.
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Rising Nonrenewals: Texas saw a sharp increase in home insurance nonrenewals from 2020 to 2023—often triggered by these aerial assessments.
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ICT’s Position: ICT supports innovation in risk evaluation but emphasizes that "technology must be used responsibly to preserve consumer trust," said Richard Johnson, ICT Director of Communications.
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Privacy & Accuracy Concerns: Homeowners have filed complaints over outdated or incorrect images being used to cancel policies. In some cases, insurers reviewed the wrong property altogether.
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Looking Ahead: ICT is tracking legislative conversations on AI and imaging technologies in insurance and continues to represent insurers’ interests in maintaining a fair, competitive marketplace.
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Industry News:
Global insured losses reach $146bn in 2024, driven by hurricanes & SCS: Swiss Re
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Global insured losses from natural disasters surged to $146 billion in 2024, according to a new report from the Swiss Re Institute — the second-highest total on record. The findings highlight a growing protection gap and continued pressure on the reinsurance market amid more frequent and severe weather events.
Key Points:
- Natural catastrophes accounted for $137 billion in insured losses, well above the 10-year average of $98 billion.
- Major drivers included Hurricanes Helene and Milton, severe convective storms in the U.S., widespread urban flooding, and record insured losses in Canada..
- Total economic losses reached $318 billion, with 57% of those losses uninsured, creating a global protection gap of $181 billion.
- Secondary perils, especially severe storms, were the primary source of losses, though primary perils like tropical cyclones still pose the greatest threat.
- The reinsurance market remains well-capitalized, but Swiss Re cautioned that capital must keep pace with rising risk and deliver sustainable returns over time.
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Industry News:
At a Premium: Texas Legislature Mulls Reforms to Cumbersome Insurance Industry
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The Texas Legislature is tackling the complex and costly insurance market this session amid skyrocketing premiums, shrinking margins, and growing consumer frustration. Lawmakers, led by key figures like state Rep. Tom Oliverson and Sen. Charles Schwertner, are advancing proposals to rein in rates and improve transparency. Much of the urgency stems from a combination of economic volatility, catastrophic weather events, and rising litigation costs.
Key Points:
- Premium Increases: In 2023, auto insurance rates rose by 25.5% and home insurance rates by 21%, according to the Texas Department of Insurance.
- Litigation Costs: Texas ranks fourth in the nation for “nuclear verdicts” (jury awards over $10 million), which drive insurers to settle and pass costs to consumers.
- Market Contraction: Companies like Progressive and Nationwide have scaled back offerings in Texas, shrinking the supply of insurers and driving up rates.
- Legislative Proposals: Senate Bill 1643 would require state approval for insurance rate hikes of 10% or more, while SB 1642 would restructure TDI leadership to improve consumer focus.
- House Priorities: Insurance Committee Chair Jay Dean is advancing HB 138 and HB 139 to increase transparency and expand affordable health coverage options for small businesses.
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Industry News:
Data shows extreme weather events are causing home insurance rates to skyrocket
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Some federal lawmakers are raising concerns about rising homeowners insurance costs tied to more frequent and severe weather events. A Houston resident testified before a Senate committee this week, sharing how extreme weather and inflation are driving up premiums. Meanwhile, state data reveals a sharp increase in insurance companies' requests to raise rates in Texas.
Key Points:
- Homeowners insurance rate increase requests in Texas have more than doubled over the past decade, according to the Texas Department of Insurance.
- One Houston resident told senators his premiums have doubled since 2010, forcing him to consider relocating due to affordability concerns.
- The highest requested rate increase in 2025 so far is 36%.
- Experts say insurers often begin charging higher premiums before rate hikes are officially approved.
- Although the Texas Department of Insurance can challenge overcharges, experts say it rarely happens.
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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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