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For Immediate Release
July 14, 2005
Good News Permeates Mid Year Symposium
Speakers at the 2005 Mid Year Property and Casualty Symposium meeting in
Austin spoke of success stories from both the P&C industry and this past session of the
Texas Legislature. Insurance Information Institute economist Dr. Bob Hartwig summed
up the day’s comments with the title of his speech called, One Good Year Does Not a
Long and Prosperous Year Make.
Three hundred representatives from more than 100 insurance companies heard
industry leaders praise what they called one of the best years on record for the property
and casualty industry in Texas.
Hartwig said it was about time the P&C industry made money in Texas. Hartwig
pointed out how an investment in the state’s homeowner market fifteen years ago would
be worth less today.
“While Texas has miraculously escaped the wrath of hurricanes, it has had its own
misfortunes in the form of hailstorms, tropical storms and mold,” said Hartwig. “The
future of the state’s homeowners market looks much brighter if we can keep weather
catastrophes at bay.”
Hartwig also questioned whether Texas cities were at risk for terrorism. He
pointed out how supported for Terrorism Risk Insurance Act had eroded, which many
insurers find alarming.
Jay Thompson of the law firm of Thompson and Coe said the P&C industry
dodged several bullets during the 79th session of the Texas Legislature.
“Restricting or simply outlawing the use of credit scores was certainly on the
table for discussion as was implementing a hefty franchise tax on insurers,” said
Thompson. “We were fortunate this year, but don’t expect either topic to be a dead issue
whenever lawmakers are in session.”
Thompson also said legislators took a big step in finally resolving their issues
over the workers’ compensation dilemma. Their agreement resulted in the creation of the
Texas Department of Workers’ Compensation which will fall under the Texas
Department of Insurance.
Thompson said one of this past session’s biggest disappointments was lawmakers’
failure to reach an agreement on finding a financial solution to preparing the Texas
Windstorm Insurance Plan Association for a major hurricane catastrophe.
Texas State Demographer Dr. Steve Murdoch warned insurers that the state was
getting bigger and more diversified. He urged insurers to take a closer look at the makeup of the manpower that is quickly filling many of the blue collar jobs in Texas.
The symposium’s luncheon speaker, Texas Supreme Court Justice Phil Johnson,
discussed said the state’s highest court’s recent decisions on insurance related matters.
An afternoon panel discussion pointed toward signs of competition in all lines of
insurance, which ultimately benefits consumers with lower rates.
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