Key Insurance Legislative Developments in Texas' 89th Legislature

The 89th Regular Session of the Texas Legislature registered significant attention to insurance issues, reflecting ongoing concerns about health insurance costs, coverage, access, and notably the availability and affordability of property and casualty insurance in Texas. Several property and casualty insurers have either withdrawn from the Texas market or reduced their offerings, leading to increased homeowner insurance rates and anxieties particularly in coastal regions regarding windstorm insurance.

Legislative efforts sought to address these issues, including proposals to reform the state’s "file and use" rate system that allows insurers to file without prior approval, and a proposal to replace the single insurance commissioner with a multi-person board to oversee insurance regulations, a structure Texas had in the past. Although these specific reform bills did not pass, the legislature enacted a range of other laws aimed at improving insurance conditions for Texans within the 140-day session.

Among these were initiatives to introduce a statewide building resiliency grant program intended to strengthen structures against damage, thereby potentially lowering insurance claims and costs over time. This legislative session highlighted the complexity of managing insurance markets within Texas, balancing regulatory oversight and market forces to address affordability and market stability challenges. The legislative developments offer insights for insurance providers, regulators, and stakeholders aiming to navigate and adapt to evolving state insurance policies and market dynamics.