DECEMBER 1ST MARKS TRANSITION TO INSURANCE COMPETITION
New Insurance Regulatory System to Promote Competition and Consumer Choices

The following statement can be attributed to Beaman Floyd, executive director of the Texas Coalition for Affordable Insurance Solutions. The statement comes as the state transitions to a new regulatory system called “file and use,” which encourages a competitive insurance marketplace, expanding consumers’ choices for home and auto insurance.

Today marks a significant step forward for the insurance marketplace in Texas. December 1, 2004 is the date set by the 2003 Legislature’s Senate Bill 14 to mark the starting point for a new regulatory system that promotes competition and consumer choices for homeowners and auto insurance. This new system also includes strong consumer protections to safeguard Texans from insurance fraud and abuse.

The system, called “file and use,” has worked well for other types of insurance in Texas, and will now improve auto and homeowners insurance regulation. The Texas "file and use" system is patterned after successful regulatory approaches in Illinois and South Carolina. “File and use” encourages a competitive insurance marketplace, which will deliver greater choices of insurers, encourage price competition, and provide consumers with more options of policies and services.

We've already seen improvement in the marketplace based on the promise of “file and use.” More insurance companies have started doing business in Texas, creating jobs for our state.

This is a great day for Texas but only proper implementation of “file and use” will benefit Texans. With the arrival of competition, Texans will have more opportunity than ever to shop around for insurance to find the best insurance products to meet their needs and budget.

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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. TCAIS members include American Insurance Association, Allstate, Nationwide, State Farm and USAA.