The current file-and-use system for determining Texas homeowners insurance rates is becoming a hot-button issue in the race for governor as candidates debate the merits of an old system and the potential for a new one.
To the consumer, insurance rate filing may seem like a lot of confusion, but the long-term effects are important for both insurance companies operating in the state of Texas and for homeowners who may be susceptible to over-charges.
Summarizing both sides arguments is National Underwriter (NU), a magazine focused on the insurance industry. In describing why he’d institute a system where insurance companies to prove why rate increases are necessary, Bill White, gubernatorial candidate and current Mayor of Houston said, “This is a common-sense approach that’s worked in states all over the country,” before accusing current governor Rick Perry of failing to reduce Texas homeowners insurance.
On the other side, representatives from Texas Governor Rick Perry’s campaign seem to think differently claiming MORE insurance regulation is the wrong path to follow. Echoing these sentiments is Southwestern Insurance Information Service (SIIS) spokeswoman Sandra Helin, who contends, “Increasing regulation would discourage companies from writing in Texas and decrease availability.”
We’re all for transparency and a competitive environment where prices are fair and consumers are the ultimate winners, so we’re following this story closely and will keep you up to date on any changes to the current system for determining Texas homeowners insurance rates.
Chris Rossi
August 31st, 2010
Great job on this. I think we are all fed up with the government overregulating us to death!