Texas TDI Proposes Key Changes to Commercial Lines Reporting Requirements
The Texas Department of Insurance (TDI) has proposed key changes to the Texas Commercial Lines Statistical Plan, codified in 28 TAC §5.9501. These adjustments align with House Bill 2067 from the 89th Legislature, mandating insurers disclose reasons for policy declinations, cancellations, or nonrenewals. Under this legislation, insurers must report data by ZIP code and submit quarterly to TDI, which will publish the information online.
Insurers will follow a revised Commercial Plan for data submissions, featuring new codes for declination and cancellation reasons across various insurance lines such as liability, property, and businessowners. Enhanced reporting is also required for farm, ranch, and associated insurance lines, with either monthly or quarterly submission obligations. New reason-code reporting requirements ensure comprehensive disclosure beyond consumer-level communication.
Notably, these changes introduce indicators to identify if declinations, cancellations, or nonrenewals are based on third-party information. The updates also outline data reporting exemptions for actions that occur before October 1, 2026. TDI seeks to modernize reporting by removing outdated technology references and correcting past errors, facilitating more efficient electronic submissions.
The updated plan includes new codes for technologies like unmanned aerial systems and addresses larger deductible amounts exceeding $999,999, allowing TDI to better monitor the industry landscape. These changes are designed to keep insurance practices aligned with modern technological standards while ensuring clear data collection practices.
Insurers will face initial compliance costs as they update systems to adhere to new reporting requirements, which include adapting workflows and training staff. While these adjustments may require significant initial investment, ongoing costs are anticipated to be minimal due to prospective automation efficiencies, although fees from statistical agents or third-party vendors may apply.
The amendments aim to bolster TDI’s ability to track market trends, ensuring transparency and consumer protection. Public commentary on the proposal closes June 22, 2026, with a subsequent hearing on June 15, 2026. Stakeholders can access additional details on TDI’s website or contact the Office of the Chief Clerk. Statutory authority for these reforms is granted by sections of the Insurance Code, including §§38.001, 38.202, and 38.205.