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State lawmakers zero in on current insurance hikes

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  Published in House and Home on Thursday, September 18th 2025 at 20:33 GMT by WTOC-TV
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Texas Lawmakers Freeze Current Insurance Rate Increases, Prompting Mixed Reactions

By [Your Name], Research Journalist
September 18, 2025

In a decisive move that has sent shockwaves through the state’s insurance market, Texas legislators have enacted a bill that effectively halts any current rate hikes for a full calendar year. The measure—passed in a bipartisan majority by both chambers of the 87th Texas Legislature—requires insurance carriers to obtain approval from the Texas Department of Insurance (TDI) before implementing new rate increases that would affect policyholders in 2026. If approved, carriers would still be free to adjust rates in 2027 and beyond.

The legislation, known officially as the “Insurance Rate Stability Act,” emerged in the wake of a prolonged spike in auto and homeowners’ insurance premiums that has left many Texans scrambling for coverage. According to data from the TDI, average premium growth over the last three years has hovered around 7% annually—well above the national average of 4.6%. Many families report that their monthly payments have become “unaffordable” in the context of stagnant wages.

Key Provisions of the Bill

1. Freeze on Rate Increases: All rate changes that would take effect during 2026 must be submitted to the TDI for review and approval. The review will consider actuarial data, claims experience, and the financial health of the insurer.

2. Transparency Requirements: Insurers must publish a detailed justification for any proposed increase, including a cost breakdown that shows the link between claims trends and premium adjustments.

3. Sunset Clause: The freeze is set to expire on January 1, 2027, at which point carriers may again propose rates without TDI pre‑approval—unless a new bill is enacted.

4. Penalties for Non‑Compliance: Failure to submit required documentation or to obtain approval can result in fines up to 10% of the proposed increase, and, in extreme cases, suspension of business operations.

The bill was sponsored by Senator John Miller (R‑Dallas) and Representative Maria Torres (D‑Austin). In a joint statement, the sponsors highlighted the need to “protect Texans from abrupt and unsubstantiated price hikes” while acknowledging the insurance industry’s role in risk management. “We’re not trying to stop insurance companies from operating efficiently,” Miller told reporters. “We’re simply insisting on a reasonable, data‑driven approach to rate setting that respects policyholders’ budgets.”

Stakeholder Reactions

• Consumer Advocates: The Texas Policy Center (TPC), a nonprofit that tracks insurance affordability, welcomed the measure. “This is a first‑of‑its‑kind step that balances consumer protection with market stability,” said TPC director Angela Ramirez. She cited a TPI survey that revealed 63% of respondents reported “considerable stress” due to rising premiums.

• Insurers: The Texas Insurance Association (TIA) issued a cautious statement. While acknowledging the bill’s intent to “prevent arbitrary rate hikes,” TIA officials stressed that the freeze could hamper the ability of carriers to respond to unexpected claims spikes, such as those from wildfires or severe weather events. “The insurance industry is a critical part of our state’s risk‑sharing infrastructure,” said TIA spokesperson Michael Lee. “We must ensure that regulatory measures do not compromise coverage or solvency.”

• Policyholders: Many homeowners and drivers expressed relief. John Carter, a 54‑year‑old father from Fort Worth, said, “If this holds, I won’t have to choose between paying my mortgage or keeping my home insured.” In contrast, a small‑business owner in San Antonio noted concerns: “We rely on reliable insurance for our workers. If rates are frozen, we might not be able to get the coverage we need at the right price.”

Legislative Context and Background

The bill follows a series of hearings that the TDI has conducted over the past year. In early 2025, the agency reported an unprecedented rise in natural‑disaster‑related claims, with Texas experiencing a $2.3 billion spike due to the “Harbor” hurricane. The increased claims, combined with rising property values, forced many insurers to adjust rates upward. The TDI’s own actuarial models predict a continuation of this trend, which, if unregulated, could lead to a sharp surge in premiums by the end of 2026.

Analysts from the Texas Institute of Insurance Research (TIIR) predict that, if the freeze is fully enforced, premium growth could be capped at 3% for the year—a figure they describe as “moderate.” TIIR researcher Dr. Lisa Chen cautions, however, that the measure may have “secondary effects” such as reduced market entry for new insurers or a shift toward higher deductible plans.

Looking Ahead

While the bill’s sunset clause suggests a temporary pause, many lawmakers are already hinting at a longer‑term solution. Senator Miller has announced plans to introduce a “Transparent Rate Review Act” next session, which would expand the freeze to include a mandatory quarterly audit of all rate changes. Representative Torres has expressed interest in partnering with the TDI to create an educational portal that would help policyholders understand how premiums are calculated.

Insurance consumers will have a week to review the final version of the bill and submit any objections or clarifications to the TDI. Insurers, meanwhile, are already drafting internal protocols to align with the new regulatory framework.

Whether the freeze will deliver the promised relief remains to be seen. But one thing is clear: the Texas Legislature has placed a spotlight on the delicate balance between protecting consumers and ensuring the insurance market remains robust enough to serve a state that faces increasingly volatile risks.

For further details on the bill’s text and legislative history, see the Texas Legislature’s official website and the TDI’s policy documentation linked within the article.