Texas Moves to Tighten Regulation on Property Insurance Rate Increases

Texas lawmakers are advancing legislation to require insurers to obtain state approval before raising homeowners insurance premiums, aiming to curb the steep increases driven by natural disasters such as hurricanes and wildfires.

Texas currently uses a file-and-use system which allows insurers to adjust rates without prior approval, resulting in some of the highest homeowners insurance costs in the nation. The proposed bill, supported by a bipartisan majority in the Texas Senate despite insurance industry opposition, would shift Texas toward a prior-approval model similar to California's, potentially increasing regulatory oversight to protect consumers from sudden premium hikes.