The Alliance of American Insurers urged Texas government officials and insurance regulators to take a reasoned approach to resolving the homeowners insurance crisis brought on by the announcement that Farmers Insurance will leave the Texas market over the next year.
“We sympathize with the customers and the agents who will be affected by this drastic action, but we realize that business conditions have driven Farmers to this decision,” said Joe Woods, the Alliance’s southwest regional manager in Austin.
“Companies cannot continue to bleed money as Farmers has been doing in Texas. Insurance is a business that has shown its ability to provide a valuable service at reasonable prices in a fair, competitive marketplace. We continue to believe that the free market, not government intervention, should decide what coverage should be offered and at what price.” Woods said he would like to see Farmers and the government reach some reasonable agreement as to how they could stay in the Texas homeowners market.
“The Alliance stands ready and willing to continue to work with the administration, the legislature and the insurance regulators to assist in resolving the issues that have made Texas such a difficult place to do business,” he said. “Continuing to use this issue as a political football accompanied by threats and legal actions will serve no positive purpose and only further harm homeowners in Texas. Something must be done to make Texas an attractive state in which to once again write business.”
Topics Texas
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