Unlike most states, the government sets a fixed rate for title insurance, preventing competition for consumers’ business. By requiring the purchase of comprehensive, one-size-fits-all title insurance policies at a fixed rate, Texas increases costs for both consumers and businesses.
Impact of a Border- Adjustment Tax on the Texas Insurance Market
Applying a destination-based cash flow tax—better known as a “border-adjustment tax,” or BAT—to the import of reinsurance would have significant effects on the cost and availability of a range of insurance products. This report projects that, for Texas consumers, the impact would be $3.39 billion in higher property-casualty insurance premiums over the next decade.