January 3, 2003

Happy New Year from the Texas Coalition for Affordable Insurance Solutions!

2002 was tough for the homeowners insurance market in Texas. Several years of high weather-related losses, state mandates, and skyrocketing mold claims stressed insurance companies to the breaking point. As a result, Texas consumers faced high rates and threats to the availability of insurance while Texas insurers faced continued high losses and tough business decisions about whether to continue writing policies.

Positive steps have been taken....

Several steps were taken last year, however, to begin improving the situation. Texas lawmakers and the Commissioner of Insurance held a series of hearings to study the situation and to seek remedies. The Commissioner began approving a limited number of new policy forms, the first step toward consumer choice in Texas. Insurers formed the Texas Coalition for Affordable Insurance Solutions to provide information to both consumers and policy makers, to study regulatory options, and to propose working solutions to the market crisis.

But more can be done to create a healthy, competitive insurance market in Texas

In 2003, the Texas Legislature will have the opportunity to accomplish long-term regulatory reform. TCAIS continues to encourage policy makers to learn from the experiences of other states, both good and bad. After reviewing the positive experiences in states like Illinois and South Carolina, and the negative experiences of New Jersey and Massachusetts, TCAIS has adopted a set of seven principles to serve as a guide for creating a good regulatory framework. The legislature should take the best of current Texas regulation and blend it with the best features from other states. The result will be a system that encourages healthy competition among insurance companies while providing strong consumer safeguards and choice. Click here to learn more about TCAIS solutions.

While all parties in Texas, including consumers, insurers and elected officials, are anxious for a speedy solution, good policy requires that lawmakers don’t just get mad, but get it right.

What others are saying about the need for Competition and Consumer Choice in Insurance Reform for Texas

Click here to read the recent editorial on insurance reform in the Tyler Morning Telegraph.

Click here to read more about what other Texas newspapers are saying.

Insurance reform:
Don’t just get mad, get it right.

Texas Coalition for Affordable Insurance Solutions
www.TCAIS.org

TCAIS is a proactive alliance of insurance providers and trade organizations committed to working with legislators, regulators, consumers and others to find public policy solutions that will improve insurance availability and affordability in Texas.