Speakers at the Insurance Council of Texas’ 2005 Mid Year Property and Casualty Symposium had good news to tell about both the property and casualty industry and the 2005 regular session of the Texas Legislature.
The symposium, held July 12 in Austin, Texas, featured among the speakers Insurance Information Institute economist Dr. Bob Hartwig, who characterized Texas’ experience with the title of his speech called, “One Good Year Does Not a Long and Prosperous Year Make.”
Three hundred representatives from more than 100 insurance companies heard industry leaders praise what they called one of the best years on record for the property and casualty industry in Texas.
Hartwig said it was about time the P/C industry made money in Texas. Hartwig pointed out how an investment in the state’s homeowner market fifteen years ago would be worth less today.
“While Texas has miraculously escaped the wrath of hurricanes, it has had its own misfortunes in the form of hailstorms, tropical storms and mold,” Hartwig said. “The future of the state’s homeowners market looks much brighter if we can keep weather catastrophes at bay.”
Hartwig also questioned whether Texas cities were at risk for terrorism. He pointed out how supported for Terrorism Risk Insurance Act had eroded, which many insurers find alarming.
Jay Thompson of the law firm of Thompson and Coe said the P/C industry dodged several bullets during the 79th session of the Texas Legislature.
“Restricting or simply outlawing the use of credit scores was certainly on the table for discussion as was implementing a hefty franchise tax on insurers,” Thompson said. “We were fortunate this year, but don’t expect either topic to be a dead issue whenever lawmakers are in session.”
Thompson also said legislators took a big step in finally resolving their issues over the workers’ compensation dilemma. Their agreement resulted in the creation of the Texas Department of Workers’ Compensation, which will fall under the Texas Department of Insurance.
Thompson said one of this past session’s biggest disappointments was lawmakers’ failure to reach an agreement on finding a financial solution to preparing the Texas Windstorm Insurance Plan Association for a major hurricane catastrophe.
Texas State Demographer Dr. Steve Murdoch warned insurers that the state was getting bigger and more diversified. He urged insurers to take a closer look at the make-up of the manpower that is quickly filling many of the blue-collar jobs in Texas.
The symposium’s luncheon speaker, Texas Supreme Court Justice Phil Johnson, discussed said the state’s highest court’s recent decisions on insurance related matters.
An afternoon panel discussion pointed toward signs of competition in all lines of insurance, which ultimately benefits consumers with lower rates.
Topics Catastrophe Texas Market Property Casualty
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