Texas governor asks TDI to make property insurance more affordable
Texas Gov. Greg Abbott has directed the Texas Department of Insurance (TDI) to take actions to make property insurance more affordable.
While mostly focused on homeowners insurance, he has asked the TDI to study the impact of “excessive, unnecessary, and inflated claims costs” on Texas’s commercial and personal auto and homeowners insurance markets.
“The average annual homeowners’ insurance premium in Texas has risen 79% in six years,” Abbott said in a press release. “High insurance costs hit Texas families hard. Today, I direct the Texas Department of Insurance to put consumers first and take action that makes property and casualty insurance more affordable.”
Abbott also asked the TDI to create an Insurance Fraud Task Force to clamp down on insurance fraud, which the release states harms all consumers by making insurance more expensive.
The TDI also was told to issue a bulletin for all TDI-regulated products that bans the practice of “price optimization,” whereby insurers use personal data unrelated to insured risk to set prices.
“TDI shall also identify additional administrative actions that can be taken immediately and any statutory changes needed to protect consumers and make insurance products more affordable,” the release states. “These recommendations are due to the Office of the Governor by Monday, September 14, 2026.”
The governor also plans to work with the legislature next session to further enhance consumer protections for insurance policyholders and curb premium increases, the release states.
In his letter to Texas Insurance Commissioner Amanda Crawford, Abbott states he’s planning legislation that will allow all auto insurers to consider good driving habits to reduce premiums.
“TDI is responsible for protecting Texas policyholders by fairly and diligently regulating the insurance industry, promoting a stable and competitive market, providing clear information to consumers, and ensuring Texas consumers are protected and given fair treatment,” the letter states.
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