Email about Texas Windstorm Insurance Association sparks turmoil
There is turmoil in Texas after an internal email from the state’s Department of Insurance suggests that property insurance rates may be on the rise. According to the email, which comes from Insurance Commissioner Eleanor Kitzman, the agency is weighing its options with the beleaguered Texas Windstorm Insurance Association and may be looking to raise rates on properties along the Gulf Coast to help remedy the organization’s financial troubles. The email has raised concerns amongst consumers, advocacy groups, private insurance companies, and state legislators who believe that such a move could have far-reaching implications for the Texas insurance industry.
Email suggests regulators looking to take action on solving the problems of state-backed insurer
The Texas Windstorm Insurance Association, like most other state-backed insurance groups, is being crippled by financial troubles that could threaten people’s ability to acquire policies that provide coverage for wind damage. The email from Commissioner Kitzman calls for regulators from the Department of Insurance to prepare for a meeting in which funding options for the insurance group would be discussed. Kitzman has long said that the insurance group is unsustainable in its current form and is eager to find a solution to the problem.
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Regulators may be looking to increase rates in coastal counties
The solution to the problem of the Texas Windstorm Insurance Association may cost consumers a significant amount of money. The email notes that Kitzman is looking for a “3-5 year transition to market rates” for counties along the Gulf Coast. The email goes on to suggest that the Insurance Commissioner may be inclined to force private insurance groups to write policies in risk prone parts of the state that they have been avoiding due to the potential financial losses they could see.
Email causes concern amongst lawmakers
The email has created a great deal of controversy in the state and Texas legislators are now concerned that the Department of Insurance may be taking drastic measures to fix the problems of the Texas Windstorm Insurance Association. Legislators had encouraged the Department of Insurance to find a way to make the insurance group become more efficient and continue to provide consumers with the coverage they need, but no definitive plan has yet been established.