My first legislative session was in 1995 when the Texas Legislature got out in front of the rest of the country by expanding competition in the telecommunications market, a market that at one time was regulated from top to bottom, much like today’s title insurance market. Because of this and more recent efforts to expand competition both here in Texas and the federal level, consumers and the economy have greatly flourished. We see the results all around us today; cell phones, the Internet, telemedicine, and enhanced educational opportunities are just a few of the benefits that society is reaping through competition.
Consumers would likewise greatly benefit from introducing competition into the title insurance market. Homeownership is expensive enough without adding unnecessary costs through high-priced title insurance caused by the inefficiency of a highly-regulated market. Homeowners stand to benefit from competition in this market just like consumers have benefitted from increased competition in the telecommunications, electricity, airline, and property insurance markets. The Foundation will be conducting research during 2016 in order to educate policymakers and consumers about these benefits.
We at the Texas Public Policy Foundation are strong advocates for free markets that have proven over and over to be the best economic system for enhancing personal liberty and increasing prosperity for all. It’s time that we, in Texas, include title insurance in our free market offerings.