Governor Abbott announces TDI action on insurance costs

Press release

Governor Greg Abbott today announced that the Texas Department of Insurance (TDI), in response to his August 24 directive, identified actions to protect consumers and make property and casualty insurance more affordable for Texans.

"The average annual homeowners' insurance premium in Texas rose 79 percent in six years," said Governor Abbott. "High insurance costs hit Texas families hard. I 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."

Last month, Governor Abbott directed TDI to put consumers first, take action under existing authority, and identify any further administrative steps and statutory changes needed to protect policyholders. TDI will execute the actions the Governor directed:

Enforce Commissioner's Bulletin #B-0008-26, issued in response to the Governor's directive, which directed insurers to account for a home's FORTIFIED roof status in rate setting so premiums reflect the lower risk;Propose a rule that clarifies the existing prohibition on use of the age of the property. The rule will make clear that insurers may not use the age of individual components, such as the roof, as a basis to refuse to write or renew residential property coverage;Enforce Commissioner's Bulletin #B-0007-26, issued in response to the Governor's directive, which states that price optimization already violates Texas law for TDI-regulated products;Create an Insurance Fraud Task Force and invite law enforcement organizations, anti-fraud groups, consumers, and other key stakeholders to participate; andProduce, by the end of 2026, a concise, web-based study of what drives claim costs, drawn from data already available to TDI, and seek additional details on claims closed without payment. The Governor directed that study for the commercial auto, personal auto, and homeowner markets.

TDI also identified additional steps under current law, including an analysis of insurer use of AI in claims and underwriting, plain-language coverage tools, updates to HelpInsure.com, and fewer barriers for new market participants.

Last session, Governor Abbott signed laws that require notice when a policy is declined or canceled, bar forced bundling of home and auto policies, eliminate the widow penalty, and require current credit scores if insurers use them. For the next session he has already put forward a Texas Roof Fortification Program and a measure that allows all auto insurers to rate on driving records. TDI's response identifies those same tools, plus further statutory options on rate review, renewal-price notice, advertising costs in rates, claim deadlines, and roof-contractor standards.

Governor Abbott will work with the Legislature next session to further enhance consumer protections for insurance policyholders and further curb premium increases.

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