Consumer advocates and insurance groups announced the launch of a public education campaign to encourage Texans to shop around for insurance. The campaign marks the one-year anniversary on Dec. 1 of the implementation of insurance reforms designed to promote insurance competition and give Texans more choices for home and auto insurance.
The Texas Coalition for Affordable Insurance Solutions (TCAIS), Americans for Prosperity (APF), the Southwestern Insurance Information Service (SIIS), and the Independent Insurance Agents of Texas (IIAT) are urging Texans to take advantage of budding insurance competition by shopping around.
“Shopping is the consumer’s most powerful tool to make the newly competitive market work for them,” said Beaman Floyd, executive director of TCAIS, whose members include Allstate, the American Insurance Association, Nationwide, State Farm and USAA. “Now more than ever, Texans can cash in on insurance competition.”
The group noted that only a year after the implementation of reforms, 50 new insurance companies are doing business in Texas and some insurers recently filed rates with the Texas Department of Insurance reflecting rate reductions for homeowners insurance of up to 14.5 percent.
“Competition is the best regulator of the insurance marketplace because it attracts new companies, encourages competitive pricing, and expands customers’ choices for products and services,” Floyd said.
“Texas consumers deserve choices. Thanks to legislation that included new regulations for the insurance marketplace, more competition now exists in Texas,” said Peggy Venable, state director of Americans for Prosperity. “Consumers who are looking for a better value or want to make a change can call a growing list of competitors to get the customer service, price, and level of coverage they want.”
The idea of shopping for homeowners insurance is new in Texas, according to Jerry Johns, president of SIIS. “For the past 70 years, there was no reason to shop for homeowners insurance,” said Johns. “Before the reforms, the state told insurance companies what they could sell and for how much. But now competition is increasing and Texas consumers stand to benefit by shopping around for the best combination of prices, products and services.”
In addition to promoting competition, insurance reforms also empower the Texas Department of Insurance to monitor insurers’ solvency, enforce consumer protections, and combat fraud. Floyd described these powers as the “right kind of regulation.”
“While consumers shape the competitive marketplace by shopping, they can rest assured that their interests are being safeguarded,” he said, noting that extensive consumer protection measures are in place in Texas. “The state does not have to ‘regulate satisfaction’ for Texans because now, the marketplace should operate so that shopping and consumer-driven market forces produces satisfaction. That’s the beauty of competition.”
“Surveys of independent agencies indicate that average prices for homeowners and auto insurance are lower this year than last,” said Randy Reynolds, president of the Independent Insurance Agents of Texas. “Consumers now have more choices in both coverage and price. Since one size does not fit all, we encourage consumers to work with an agent they trust to customize coverage to meet their needs.”
A free consumer brochure, “Smart Shoppers Save,” with tips for shopping for insurance is available at www.tcais.org.
Topics Texas Legislation Homeowners
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