Press Releases

FOR IMMEDIATE RELEASE

MAY 21, 2008

CONTACT: Beaman Floyd
(512) 731-9939 or bfloyd@tcais.org

TCAIS STATEMENT ON TEXAS DEPARTMENT OF INSURANCE SUNSET ADVISORY COMMISSION STAFF REPORT

The Texas Coalition for Affordable Insurance Solutions (TCAIS) issued a statement May 21, 2008 in response to the Sunset Advisory Commission Staff Report on the Texas Department of Insurance.

The following statement can be attributed to Beaman Floyd, executive director of TCAIS:

“The Sunset Advisory Commission Staff Report is a factual analysis of the current state of the homeowners and auto insurance marketplace in Texas as well as the pending challenges. We look forward to a continued policy discussion on how to best advance the competitive market.

“Reforms passed in 2003 have stabilized or lowered homeowners premiums for most Texans even as home values have increased substantially; attracted 29 new homeowners insurance companies to Texas; and increased choices and availability of coverage for consumers. However, the staff report finds that while the recent reforms have helped improve our competitive market, the new regulatory system has not been fully allowed to work. A move to more consistently apply the current competitive file and use regulatory system and more clearly define the authority of the Department of Insurance will provide greater market predictability and ensure Texans reap the benefits of a truly competitive marketplace.

“As Commission members and others review the Sunset staff’s report in preparation for a hearing in June, TCAIS members ask that any recommendations for changes at TDI focus on improvements that ensure continued market development that benefits consumers, insurers and the broader Texas economy.

“Specifically, TCAIS asks state policymakers to continue the movement towards a more predictable regulatory environment for rates, streamline and accelerate the rate dispute resolution process, and provide a more stable financial structure for the Texas Windstorm Insurance Association.

“Each of these improvements will enhance the faith of both consumers and insurers in the market, reduce regulatory uncertainty and attract more insurance capital to Texas.”

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.

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