 |
 |
(AUSTIN) On the eve of a crucial vote in the Texas Senate, the Texas Coalition for Affordable Insurance Solutions is urging lawmakers to oppose the committee substitute to Senate Bill 14 because it will hurt Texans by further threatening the availability of insurance in Texas. TCAIS warns that CSSB 14 will make the current insurance crisis in Texas worse for consumers because the legislation fails to solve the underlying problems in the Texas insurance market. “This bill sets the stage for unjustified rate rollbacks. It also includes other regulatory changes that may sound good on paper but, in reality, will result in more Texans finding it increasingly difficult to find insurance,” said TCAIS Director Beaman Floyd. “Legislators should be focusing on solutions that will attract more insurance companies to Texas, ultimately generating more competitive rates and more choices for consumers. We’ve told lawmakers that this bill fails to help consumers because it fails to address the core problem with the homeowners insurance market — a lack of companies willing to do business in the state.” TCAIS supports meaningful insurance reform, which includes regulating insurance companies in Texas. Yet, CSSB 14 contains no provisions that would create a competitive and predictable insurance market. TCAIS believes Texans deserve the full benefits of a healthy competitive market with regulations focused on consumer protections designed to make sure companies are financially healthy and treat their policyholders fairly. “If Texans want more choices in coverage and more affordable prices, then the solution is to improve the market by giving insurance companies the freedom to compete,” Floyd said. TCAIS suggests legislators look closely at House Bill 3346. The bill, filed by Representatives Arlene Wohlgemuth (R-Burleson) and Larry Taylor (R-Friendswood), contains several positive elements that could move insurance reform in the right direction by creating an environment that encourages more companies to enter the Texas market and compete for customers. About
TCAIS: TCAIS member companies include: Allstate Insurance
Company, American Insurance Association, Nationwide Insurance,
State Farm Insurance Companies and USAA. |
 |