Abbott Announces TDI Actions Aimed at Lowering Insurance Costs in Texas

AUSTIN, TX — Gov. Greg Abbott announced Wednesday that the Texas Department of Insurance has identified a series of actions aimed at protecting consumers and making property and casualty insurance more affordable in Texas.

The actions come in response to an Aug. 24 directive from Abbott instructing TDI to use its existing authority and identify additional administrative and legislative changes that could protect policyholders.

“The average annual homeowners’ insurance premium in Texas rose 79 percent in six years,” Abbott said. “High insurance costs hit Texas families hard. I directed TDI to put consumers first, and TDI is taking action to do so. I will work with the Legislature next session to further curb premium increases.”

TDI said it will carry out several actions included in Abbott's directive:

• Enforce Commissioner’s Bulletin B-0008-26, which directs insurers to account for a home's FORTIFIED roof status when setting rates so premiums reflect the lower risk;
• Propose a rule clarifying the existing prohibition on using the age of a property. The rule would clarify that insurers may not use the age of individual components, including a roof, as a basis to refuse to write or renew residential property coverage;
• Enforce Commissioner’s Bulletin B-0007-26, which states that price optimization violates Texas law for TDI-regulated insurance products;
• Create an Insurance Fraud Task Force involving law enforcement organizations, anti-fraud groups, consumers and other stakeholders; and
• Produce a web-based study by the end of 2026 examining factors that drive claim costs using data already available to TDI and seek additional information on claims closed without payment. The study will examine the commercial auto, personal auto and homeowners insurance markets.

TDI also identified additional steps it could take under current law, including analyzing insurers' use of artificial intelligence in claims and underwriting, developing plain-language tools explaining coverage, updating HelpInsure.com and reducing barriers for new companies entering the insurance market.

During the previous legislative session, Abbott signed measures requiring notice when an insurance policy is declined or canceled, prohibiting forced bundling of home and auto policies, eliminating what the governor's office described as a "widow penalty" and requiring insurers that use credit scores to use current scores.

Abbott has also proposed a Texas Roof Fortification Program for the next legislative session and a measure that would allow all auto insurers to use driving records when setting rates.

According to the governor's office, TDI identified those proposals along with potential statutory changes involving rate reviews, renewal-price notices, advertising costs included in rates, claim deadlines and standards for roofing contractors.

Abbott said he plans to work with the Texas Legislature during its next session on additional consumer protections and measures addressing insurance premiums.