The Texas Department of Insurance has outlined a series of administrative and legislative proposals intended to address property and casualty insurance costs after a directive from Gov. Greg Abbott.
The Dallas Express reported that Abbott instructed TDI on August 24 to use its existing authority to lower costs and identify additional changes for policyholders. Abbott said average annual homeowners-insurance premiums in Texas had risen 79 percent over six years.
TDI plans to enforce guidance requiring insurers to account for the lower risk associated with homes that have FORTIFIED roofs when setting rates. The agency also intends to propose a rule clarifying restrictions on using the age of individual components, such as a roof, to refuse residential coverage or renewal when state law bars decisions based on the property’s age.
Another enforcement area involves price optimization. TDI describes that practice as changing prices to influence sales or customer retention rather than basing them on risk or expenses. The department says price optimization already violates Texas law for insurance products it regulates.
The agency also plans to create an Insurance Fraud Task Force involving law enforcement, anti-fraud organizations, consumers, and other stakeholders. Separately, TDI will study factors driving claim costs in commercial auto, personal auto, and homeowners markets. The web-based report is expected by the end of 2026.
Artificial intelligence will receive additional scrutiny. TDI plans to examine how insurers use AI in underwriting and claims handling. Existing state guidance requires human review when AI produces consequential decisions affecting policyholders. The agency expects to provide its analysis before the next legislative session.
Other possible administrative changes include plain-language coverage tools, updates to HelpInsure.com, additional publication of non-confidential financial orders, earlier market data, and simpler applications intended to reduce barriers for new insurers.
TDI also identified proposals that would require legislative action. They include a homeowner roof-mitigation grant program, limits on advertising expenses included in rates, additional time for agency review of some filings, advance notice of renewal premiums, consistent claim deadlines, written claim decisions, and licensing or registration for roofing contractors.
The announced steps are plans and proposals, not guaranteed premium reductions. Their public-integrity significance will depend on measurable results, transparent enforcement, and whether future rules improve competition and consumer treatment without shifting costs. Lawmakers will also need to evaluate which changes require new authority and how any grant program would be funded.