Insurance reform a failure. Like DUH!

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The Houston Chronicle is finally shocked by what they call bogus insurance reform. Well, better late than never.

In response to pleas by consumers to reduce Texas homeowner insurance costs that lead the nation, state lawmakers passed reform legislation in 2003. Unfortunately, the so-called reform has primarily benefited insurance companies rather than their customers.
Like and/or DUH! Lets get down to the facts of the matter. Insurance reform of 2003 was a total scam on the consumers in Texas. We were promised lower rates from deregulation of the insurance industry. Instead we got more competition to charge higher rates, provide less coverage, and collect higher deductibles. Here is more:

  • During the 2002 campaign Texas had the highest rates in the nation.
  • Today, Texas has the highest rates in the nation, with less coverage than we had in 2002, and higher deductibles.
  • Commercial insurance for condos have tripled in the Clear Lake area.
  • Windstorm insurance has doubled.
  • In 2003 insurance companies were allowed to drop toxic mold coverage but did not reduce rates when they reduced their risk.
  • In 2003 insurance companies were allowed to drop foundation, water, and sewer coverage, but did not reduce rates when they reduced their risk.
  • In 2003 insurance companies were allowed to use credit scoring for high risk homeowners, but did not reduce rates when they reduced their risk.
  • The Democrats filed an amendment calling for a 20% cut in rates across the board in exchange for all the concessions they provided to the industry. This was defeated because the industry claimed the free market would drop the rates. It never happened.

    • Let’s all face it. Insurance deregulation like college tuition deregulation, electricty deregulation, tort reform, and CHIP reform has been a complete and total disaster for the citizens of this state.

    January 8, 2008 | Filed Under insurance

     

    Comments

    One Response to “Insurance reform a failure. Like DUH!”

    1. Richard Tomlinson on January 9th, 2008 12:45 am

      The Insurance Companies are getting their way in Austin and the Texas Department of Insutance needs a few good MBA’s so that they can do more than publish statistics and punish the ma and pa operations.

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