Reform of the Texas homeowners’ insurance market in 2003 called for a file-and-use regulatory system. However, in 2009, the Sunset Review Commission’s Staff Report on the Texas Department of Insurance (TDI) rightly concluded that the “Legislature cannot judge the success of the shift to file-and-use rate regulation because the system has not been fully implemented.” Conditions have little improved since the report was issued.
TWIA’s Expanding Reach Raises Fresh Concerns
TWIA has become the leading wind and hail insurer in the catastrophe area. Its position has direct and indirect consequences for Texans statewide. Key points: Since 2020, TWIA has steadily increased its market share in the catastrophe area, raising concerns about scope and cost. TWIA’s quasi-governmental model imposes potential costs on statewide policyholders and private...