Problem: Texans face the country's highest premium increases and rates in many categories, including homeowners and healthcare. Texas leads the nation in adults and children without healthcare insurance, by percentage. Texas families' health insurance premiums have increased 91.6 percent since 2000, almost five times faster than earnings have increased for Texans during the same period. Between 2000 and 2008, the percentage of companies across the nation offering health coverage declined by 6 percentage points. The increases in premiums have continued despite coverage offering fewer benefits or having higher deductibles.

A poor credit report costs consumers 35% more for auto or home insurance. Credit rating is not related to risk of accident; carriers ought not be allowed to base insurability on factors unrelated to insurance risk. Such activity is unfairly aimed at low income, minority and unlucky consumers.

Solution:

• Enforce rules limiting industry lobbying on agency decision makers.
• Prosecute anticompetitive profiteering, deceptive trade practices including scrutiny of claims and advertising, rates, scoring resulting in disparate impact.
• Enforce prompt pay rules.
• Discover true risk/loss ratios.

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