The National Association of Independent Insurers (NAII) announced it is conducting a series of a series of educational briefings for Texas legislators and their staff to provide background information on how the insurance business and Texas’ regulatory system works. The sessions are designed to give lawmakers basic information that is essential in making well-informed decisions about the future of the state’s regulatory system.
“The nature of insurance business operations and insurance regulation is complex,” said Donald Hanson, NAII Southwestern regional manager. “Sound decisions are seldom made on the basis of sound bites. We are concerned that the underlying root causes of the homeowners insurance crisis and basic business principles have been overshadowed by political campaign rhetoric.”
NAII met with House members and staffers this week and will meet with a group of Senators and their staff September 30. Additional meetings will be held as needed. “The NAII is interested in helping lawmakers gain a clear picture of what has happened in the Texas marketplace and why it has occurred Given the current environment, these educational briefings are essential. To achieve stable prices and a healthy competitive market, lawmakers must be armed with the facts. They will also need a good understanding of how the industry works and what impact regulatory decisions can have on not only insurance prices, but the entire Texas economy,” said Hanson.
During the briefing, NAII and lawmakers focus on the fundamentals of insurance and address how the industry is regulated, how rates are developed and how underwriting works. A critical component of the briefing involves an examination of insurer costs and premium trends. “These statistics clearly show the dramatic increase in costs, which are largely attributable to water-damage claims. These losses have pushed the industry to the brink of crisis,” said Hanson.
As the market problems have escalated, NAII has sought to work with the governor, legislators, the commissioner and other groups to promote the best solution for Texas. “NAII is committed to providing lawmakers with the objective information they need to resolve this crisis. Misguided calls for increased government involvement and price controls will not resolve the instability that is being experienced. We need reforms that will encourage competition and restore the vitality to the homeowners insurance marketplace,” said Hanson.
Topics Texas Legislation
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