I’ll save you the trouble of reading 4 pages.

The Texas House State Affairs Committee was charged to “Examine the impact of current economic challenges on the escalating costs of insurance premiums“. They held a hearing with invited testimony only. Many consumers, especially in this area, contacted the committee. I don’t think it helped. Here is a summary. The full report can be read here starting on page 70.

• Only invited testimony was allowed including a lobbyist from the Texas Coalition for Affordable Insurance Solutions representing the top 6 insurers in the state.
• In 2003 Texas adopted a “file and use” system allowing insurance companies to raise rates without prior approval from the Texas Department of Insurance (TDI)
• TDI has the rights to disapprove the rate increases but has rarely used this right
• Climate change is being blamed for high insurance rates disguise as “Frequency of storms” and “Intensity of storms”
• 60-70% of all premiums are used to pay out claims.
• AARP testified concerning the hardship being placed on the elderly on fixed incomes
• Oncor stated their insurance went from $10 Million to $60 Million in just a few years. This is passed on to consumers
• Insurance companies are complaining about “reinsurance” which I believe is insurance for insurance companies.
• Texas is NOT addressing non-renewals. They are not collecting this data. 5 of the 6 companies in the TCAIS will not cover the Bay Area
• 4 Companies, including Progressive, have left the state
• Legislators are concerned about the lack of transparency in rate increases

Recommendations:
This is disturbing. The outrageous cost of roofing after an event such as hail or a storm was not mentioned. There is evidence of price gouging concerning construction cost. They need to address it.

The recommendations included “Promote Risk Mitigation Programs:” such as the Fortify program Alabama adopted 15 years ago. A water downed bill has been filed on this issue.

They recommend providing tax funded backup to insurance companies to keep them in Texas. That doesnt make sense especially when they also recommend phasing out the Texas Windstorm Insurance Association (TWIA) and the Texas Fair Plan to allow the industry to provide these services. (They do NOT want to provide these services)

They also recommend educating homeowners and placing a surcharge on all insurance companies to pay out disaster claims.

As I said about the Senate report. This was underwhelming.