May 1, 2008

9 Catastrophes to Cost P/C Insurers $3 Billion in 1st Quarter

Texas ranked in the top five of 22 states that experienced significant property losses

Insurance Journal, April 29, 2008

High winds, at least 5 twisters cause damage in Texas

Austin American-Statesman, April 24, 2008

N. Texas Storm Damage Expected To Top $35 Million

Associated Press, April 11, 2008

Hail, tornadoes reported in West Texas storms

Dallas Morning News, April 10, 2008

Hurricane price tags soaring on crowded U.S. coast

Galveston-Houston area of Texas vulnerable

Reuters, April 6, 2008

Texas tops nation in dangerous weather, study says

Austin American-Statesman, Feb. 29, 2008

As highlighted in the recent headlines above, Texas has some of the most severe weather in the country. In fact, according to a report issued this week by the Property Claim Services, there were eight weather related catastrophes in the first quarter of 2008, and Texas ranked in the top five of 22 states that experienced significant property losses from these severe storms. Additionally, according to A.M. Best, Texas has the highest modeled occurrence rate of tornadoes in the country. Since 1950, the state has averaged 139 tornadoes per year — a total of 7,319 since 1953.

Because of the risk and inherent weather related loss in our state, providing a regulatory structure that encourages companies to do business in Texas is critical. Since our inception in 2002, TCAIS has worked to promote legislative and regulatory policies that expand insurance choice and availability in our state. Our principles are aimed at creating a strong, competitive insurance marketplace in Texas, within a regulatory framework that ensures regulation is properly focused on solvency, consumer education, and specific consumer protection from fraud and unfair practices.

Thanks to the Legislature’s past efforts to establish insurance competition in Texas, we have moved from a rigid state-controlled system and passed through a more flexible benchmark rating system to the current market oriented file and use system. This two-decade transition has been based on a combination of observing successful models in other states and responding to past regulatory crises in Texas.

Texas is on the threshold of a truly healthy market for the first time in decades. Such a market will serve the interests of insurance consumers, companies, and the broader Texas economy that relies on available, affordable insurance. However, the health of our market is by no means assured.

The Texas Department of Insurance is currently undergoing Sunset review. Sound policy decisions in the Sunset process will advance the transition to competition in the Texas insurance market to the benefit of Texas consumers and insurers. Click here to learn more about TCAIS' Sunset policy principles.

Sincerely,
Beaman Floyd
Executive Director