TCAIS Celebrates 10 Years Of Promoting Sound Insurance Policy 

Today’s competitive property and casualty insurance marketplace is a far cry from the one consumers and insurers were experiencing in May 2002, when the Texas Coalition for Affordable Insurance Solutions (TCAIS) was founded during the height of the state’s “mold crisis.”

“The health of the Texas property and casualty insurance market has improved significantly in the past 10 years, both for consumers and insurers,” said TCAIS Executive Director Beaman Floyd.  “TCAIS looks forward to starting a second decade of working with policymakers and regulators to continue to grow a stable and competitive auto and homeowners insurance marketplace.”

At the time of TCAIS’ founding, rising mold claims, excessive litigation and unproven fears about mold led to more expensive and restrictive homeowners policies and forced insurers to withdraw from Texas.

TCAIS was formed by national companies doing business in Texas to bring together those with a stake in insurance issues in Texas to find solutions to improve insurance affordability and accessibility in our state. TCAIS’ mission remains to advocate for legislative, regulatory and individual action that builds and maintains a stable, competitive auto and homeowners insurance marketplace.  Such a well-regulated, competitive market best serves both buyers and sellers of insurance.

“TCAIS is proud of its role in the positive reform of the state’s insurance market,” Floyd said. “In the past decade, overall homeowners premiums have stabilized, rates relative to value have fallen, new insurers are writing policies, and consumers can choose the coverage and price that best fits their needs. At the same time, Texas has improved financial regulation of insurance companies that operate here to ensure they remain solvent, financially stable and able to meet their true purpose of paying claims.”

Though the market has improved from the days of the mold crisis, significant issues still face both consumers and companies.  Homeowners insurance companies have operated at a loss in Texas, according to a recent 10-year snapshot compiled by the Texas Department of Insurance. According the Sunset review of the Texas Department of Insurance conducted over a four-year period, implementation of market reforms since 2003 has been uneven and incomplete. There are still laws on the books unique to Texas that inhibit the use of sound business practices used in a majority of other states.

“Texas’ unpredictable weather – with hail, tornados, wildfire and hurricanes – will continue to be the biggest challenge to insurers,” Floyd said. “Companies cannot continue to operate at a loss for the long term, nor can they operate effectively in an environment where regulation and statutory changes are unpredictable.  Because of the tremendous weather risk and loss unique to Texas, it’s critical to continue working to provide a regulatory structure that encourages companies to do business in Texas, allows for the use of rational business models, provides meaningful protection to consumers, and keeps insurance available and affordable for Texans.”

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The Texas Coalition for Affordable Insurance Solutions (TCAIS) is an alliance of insurance providers and trade organizations committed to working with elected officials, the media and the public to find public policy solutions that promote a competitive insurance marketplace that maximizes benefits for buyers and sellers of insurance. You can fine TCAIS at http://www.tcais.org www.tcais.org or follow TCAIS on Facebook (www.facebook.com/tcais) or Twitter (www.twitter.com/tcais).