Governor Greg Abbott directed the Texas Department of Insurance to implement multiple reforms aimed at reducing property and casualty insurance costs for Texas homeowners, citing a 79 percent increase in average annual premiums over the past six years.
The directives require insurers to consider homes with FORTIFIED roofs in rate-setting calculations to reduce insurance costs, and prohibit insurers from refusing to write or renew residential property policies based solely on property age or the age of individual components such as roofs.
The department was also directed to issue a bulletin banning the practice of "price optimization," in which insurers use personal data unrelated to risk assessment to set premiums. Additionally, Abbott directed the creation of an Insurance Fraud Task Force to address insurance fraud, which he said increases costs for all consumers.
The Texas Department of Insurance was instructed to conduct a study on the impact of excessive, unnecessary and inflated claims costs on the state's commercial auto, personal auto and homeowner insurance markets.
The department must submit additional recommendations for immediate administrative actions and any required statutory changes by September 14, according to Abbott. The governor indicated he will seek legislative action next session to further enhance protections for insurance policyholders.