Florida came first. Then Louisiana.

Now an insurance crisis that has swept across the Gulf Coast is spilling into Texas, where increasingly scarce property coverage has forced tens of thousands of coastal homeowners to buy policies from a state-chartered insurance program.

The rapid growth has alarmed officials and insurers. And it’s raised concerns that if a major storm hits Texas, so many claims will be filed that the state-chartered insurer will force insurance companies and residents statewide to help pay them.

We are thrilled to announce that Ray Perryman, CEO of The Perryman Group, a distinguished economist and thought leader in the insurance industry, will be joining us as a featured speaker at the upcoming ICT/AFACT Property & Casualty Insurance Symposium. Perryman's expertise and insights on economic trends, business strategy, and risk management are highly respected across the industry, making him a valuable addition to the symposium. We look forward to hearing Mr. Perryman share his unique perspectives on the challenges and opportunities facing P&C insurers, and his thoughts on how companies can position themselves for success in the years ahead. Don't miss this opportunity to learn from one of the industry's most respected voices.

For more information on registration, hotels and agenda visit the ICT website.

A committee substitute to HB 1588 by House Insurance Chairman Tom Oliverson was heard in his committee on Tuesday, April 11 and voted out at a desk hearing on April 13. The bill seeks to replace TWIA current funding structure, which relies heavily on bonds. As filed the bill allowed the Governor, in consultation with the Commissioner, Lt. Governor, and Speaker of the House to authorize a Catastrophe Infrastructure Grant to fund the CRTF to not more than $1 billion and authorized the Commissioner, in consultation with the Board to order a contingent hurricane surcharge after a catastrophic event if it is determined that the Association has depleted reserves, other funds, and the CRTF and they have no other source of funding reasonably available to provide funding for the next catastrophe year.

The trades worked with the Chair on the committee substitute, which changes the approach by simply replacing the bond layer of funding under the current structure with loans or finance arrangements provided to TWIA by the State for TWIA losses on or after Jan. 1, 2024. Under current law, the Comptroller has authority to invest state funds under Section 404.024, Government Code, and also has authority to invest the state’s enterprise funds under Section 404.0241. The substitute also provides for a statewide catastrophe hurricane surcharge to repay and secure loans or financing arrangements from the State. It maintains current law where members must pay up to $1 billion in assessments to help pay TWIA losses after a hurricane.

The insurance trade groups, and the Port of Corpus Christi testified in support of the bill. It will now go to the Calendars Committee to consider placement on the House Calendar.

The Texas Department of Insurance (TDI) has issued the annual data call to collect information for HelpInsure.com.

TDI will email the companies required to respond and encourages other insurers to participate by reporting their personal automobile and residential property sample rate data.

View Commissioner's Bulletin B-0003-23 for the data call instructions.

Fortenberry v. Great Divide Ins. Co. ___ S.W.3d ___, 2023 WL ___ (Tex. Mar. 31, 2023). The Texas Supreme Court issued a decision involving a question of venue in a workers’ compensation claims. The case involved a former player for the Dallas Cowboys who stayed in a Dallas County hotel room provided by the team while he trained and participated in preseason activities. He was injured while training out of state, and the Cowboys terminated his contract. The player filed a claim for workers’ compensation benefits.

The insurer denied the request for workers’ compensation benefits. After exhausting the administrative process, the player sued the insurer in Dallas County, but the insurer then moved to transfer venue to Travis County, which the trial court denied. At a jury trial in Dallas County, the player prevailed on his claim for benefits and the insurer appealed.

The insurer appealed on the question of venue and the court of appeals concluded that the player failed to present prima facie evidence that he resided in Dallas County at the time of his injury. The appeals court reversed and remanded for further venue proceedings.

After review, the Supreme Court reversed the judgment of the court of appeals and remanded for consideration of the insurer’s other issues which had not been addressed. The Court noted that a trial court’s venue determination must be upheld if there is any probative evidence in the record to support it and that appellate courts must consider the entire record, including the trial on the merits, when reviewing that determination. Further, Texas cases have taken a flexible view of what it means to reside in a county for venue purposes. Ultimately, the Court rejected the court of appeals’ prohibition against a hotel room serving as a person’s residence for venue purposes. The Court concluded there was sufficient evidence in the record to support the trial court’s venue ruling.

For the full ruling, click here.

The DWC has released a memo with implementation guidance for new designated doctor rules.

They also updated three forms related to these rules:

DWC Form-032, Request for designated doctor examination;
DWC Form-067, Designated doctor certification application; and
DWC Form-068, Designated doctor examination data report.

More details can be found on the TDI website.

US property/casualty (P/C) industry underwriting results are likely to improve in 2023 as premium rates rise significantly in underperforming automobile and property segments, Fitch Ratings says. However, claims volatility amid higher inflation and macro uncertainty may impede a return to underwriting profitability. The neutral sector outlook on US P/C insurance is premised on stable to improving operating performance in 2023.

To read more and access the full report, click here.