Competition

Since the Texas Legislature passed landmark reforms in 2003, the Texas homeowners insurance market has stabilized. According to the Texas Department of Insurance:

• 67 new insurance companies are competing for business in our state
• The average amount paid for every $1,000 of insurance purchased has dropped more than 26 percent (2002 to 2009)
• Consumers can easily shop around for a company or policy based on price, coverage, service and other factors instead of being stuck with the old one-sizefits- all, state-promulgated forms

Texas consumers today benefit from a more competitive insurance market, increased availability of insurance and lower rates, thanks to the reforms enacted by the Legislature, as the chart above illustrates. However, while the recent reforms have helped improve our competitive market, it is important for state policymakers to continue the movement towards a more predictable regulatory environment for rates to ensure Texans reap the benefits of a truly competitive marketplace.

Texas is on the threshold of a truly healthy homeowners insurance market for the first time in decades, even as insurance companies doing business in Texas continue to absorb some of the most severe weather losses in the country. A competitive market serves the interests of consumers, insurers and the overall Texas economy that relies on available, affordable insurance for a healthy business climate.

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