Additional action being taken to make property, casualty insurance more affordable

(The Center Square) – Additional measures are being taken to make property and casualty insurance more affordable, Gov. Greg Abbott said.

The Texas Department of Insurance is responding to directives he issued two weeks ago it says, issuing a six-page memo stating its intent to comply and make recommendations to the legislature to consider.

Abbott has been issuing a series of directives to state agencies to find ways to reduce regulatory burdens and lower costs for Texans after costs have surged under three presidential administrations.

“The average annual homeowners’ insurance premium in Texas rose 79 percent in six years,” Abbott said. “High insurance costs hit Texas families hard,” which is why he directed TDI “to put consumers first, and TDI is taking action to do so. I will work with the Legislature next session to further curb premium increases.”

One of his directives instructed TDI to prohibit insurers from “refusing to write or renew residential property insurance policies based on the age of the property, including individual components such as the age of the roof” and requiring insurers to include a home’s FORTIFIED roof status in their rate setting calculation to reduce insurance premiums. This is after Abbott proposed creating a Texas roof fortification program, The Center Square reported.

He also instructed TDI to create an Insurance Fraud Task Force, to conduct a study on the impact of excessive, unnecessary and inflated claims costs on the Texas commercial auto, personal auto, and homeowner insurance markets, and to identify administrative or legislative actions to protect consumers and make insurance products more affordable, The Center Square reported.

TDI said it will enforce requiring insurers to account for a home’s FORTIFIED roof status in rate setting; will propose a rule clarifying existing prohibition on insurers using the age of the property; and will enforce the law where price optimization is being used for TDI-regulated products. It also says it will create an Insurance Fraud Task Force and produce by the end of the year a study on what drives claim costs as directed.

TDI also identified additional measures to take under current law, including analyzing how much insurers are using artificial intelligence to determine claims and underwriting, updating HelpInsure.com and identifying fewer barriers for new market participants.

In the last legislative session, Abbott signed bills into laws now in effect that require notice when a policy is declined or canceled, ban forced bundling of home and auto policies, eliminate the widow penalty and require current credit scores if applicable.

Abbott also says he plans to work with the legislature next year to expand consumer protections for insurance policyholders and curb premium increases.

He’s announced a series of affordability proposals for the legislature to address, including reducing property and casualty insurance costs, reducing auto insurance costs, instituting new policies for homeowners impacted by storms and inclement weather, reducing property taxes, reducing electricity costs in some regions, lowering housing costs, creating a new health insurance plan, reducing public higher education institution tuition, among other proposals.

Abbott was elected in 2014 and is running for his fourth term. A win in November will make him the longest-serving governor in Texas. He is currently in the closest race of his political career, The Center Square reported.

His Democratic opponent, state Rep. Gina Hinojosa, blames Abbott for increased costs and has vowed to send every Texan a check for $1,500.