The Texas Department of Insurance (TDI) completed its second and final round of reviews of Texas homeowners’ insurance company rates, in which 29 companies were reviewed and 5 insurers were ordered to reduce rates from between 10 percent to 22.4 percent.
TDI said the resulting savings for Texans is expected to be of $393,169. These 29 insurance company groups represent one percent of the Texas homeowners market.
The five companies ordered to reduce rates as a result of the second round of reviews are: Delta Lloyds Insurance Co. of Houston (20 percent); Financial Insurance Exchange, (10 percent); Balboa Lloyds Insurance Co., (10.2 percent); Fidelity National Lloyds, (17 percent); and Pacific Specialty Lloyds, (22.4 percent). All have agreed to the reductions.
This second round of reviews completes an exhaustive evaluation of all Texas homeowners insurance rates. The review was mandated by the Texas Legislature under the provisions of Senate Bill 14. TDI previously examined the rates of the 32 insurance companies writing in excess of $10 million in Texas premium each year.
“With the completion of rate reviews and all appeals heard, the first milestone toward restoring stability and fairness to the Texas homeowners market has been completed,” said TDI Commissioner Jose Montemayor. “All Texans will now be paying fair rates for homeowners insurance in Texas.”
Montemayor noted that balancing the interests of Texas homeowners with the need for a viable insurance marketplace in Texas was a primary concern. He cited the acceptance of the ordered reductions by nearly all of the 32 larger companies and all 29 smaller insurers as evidence of a sound and fair approach to rate setting.
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