Texas has been hit hard by recent natural disasters. From the continuing drought that grips much of the southern and western parts of the state, to flooding from Louisiana hurricanes further to the east, the insurance industry has taken a major financial blow. With insurance reserves falling, many insurers in central Texas are beginning to consider raising rates in order to offset losses. Disasters may not be the only factor contributing to rate increases, however, as there has been an increase in thefts last year. Insurers are beginning to feel…
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Texas lawmakers look to rebuke application for medical loss ratio exemption
Texas legislators are urging the state’s Insurance Commissioner, Eleanor Kitzman, to withdraw an application for exemption from the medical loss ratio provision of the Affordable Care Act. The provision requires health insurers to pay no less than 80% of the money they collect through premiums on improving medical care. The provision has been a point of contention for insurers, who have fled some states that were unable to attain a waiver from the rule. Commissioner Kitzman is looking for an exemption to prevent an exodus of insurers from the state.…
Read MoreCoalition for Competitive Insurance Rates oppose new laws for foreign reinsurance companies
Two laws currently before Congress have found opposition from the Coalition for Competitive Insurance Rates, a group of businesses and consumers that rely on low rates stemming from competition in the national insurance market. The legislations in question are H.R. 3157 and S.B. 1693. Both laws impose greater taxes on foreign insurance and reinsurance companies that wish to do business within U.S. borders. The Coalition fears that this will dissuade foreign companies from entering the market, thereby reducing competition and raising insurance prices. Currently, the majority of the reinsurance needed…
Read MoreTexas wildfires wreak havoc on citizens and the insurance industry
Texas is battling a raging wildfire that has broken out in Bastrop, Hays, Travis and Williamson counties. The fires have already scorched more than 100,000 acres of land and burned several hundred homes throughout Central Texas. Many communities have been evacuated as no end is currently in sight for the wildfires. The disaster is expected to add to the financial strain bearing down on the nation’s insurance industry, which is already reeling from two costly flooding disasters stemming from Hurricane Irene and Tropical Storm Lee. Insurers are estimating that the…
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