Don Hanson, southwest regional manager of the National Association of Independent Insurers (NAII), issued the following statement on Farmers Group of Insurance Companies’ recent decision to leave the Texas homeowners market:
“Today’s announcement that Farmers Insurance Company is leaving the Texas homeowners insurance market is not likely to result in an immediate shortage of homeowners insurance in the state, but should send a clear message to regulators and legislators that measured and deliberate action in the upcoming legislative session is needed to avert a market crisis in 2003.
“Governor Rick Perry and Insurance Commissioner Jose Montemayor have taken positive steps to enhance competition in the state’s homeowners insurance market by approving new policy forms for some companies. However, until all companies have the ability to offer consumers the types of policy forms and pricing options that exist in other states, Texas policyholders will continue to pay higher prices and have fewer coverage options.
“While NAII has not heard of other companies planning to leave the Texas homeowners market, we caution legislators and regulators to not take Farmers’ action lightly. The solution to restoring a healthy insurance market in Texas is for the legislature to address the underlying causes of the homeowners insurance problem when it convenes in January. Laws that allow insurance companies to offer consumers a choice of policy forms and prices must be enacted. Well functioning markets keep prices down, spur innovation, and attract new companies to the state.”
Topics Texas Agribusiness Homeowners Market
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