How Insurance Companies Use Lobbying to Drive Up Home Insurance in Texas

Jonah Wilson
3 days ago
4 min read

Imagine this: a homeowner in Houston or Dallas, with no recent claims, opens their renewal notice — and their premium jumped by 15% or more. They’re furious, but also bewildered.

Why is this happening when nothing catastrophic hit their property?

The real answer lies not just in weather or inflation, but in lobbyists, legislative influence, and a system built to favor the insurance industry.

The Quiet Power Move: Lobbying Behind Closed Doors

Insurance companies don’t just react to laws — they help write them. Their lobbying strategy in Texas is a masterclass in influence, and here’s how it works:

Money + Policy Writers
Insurers pour millions into lobbying efforts. But they don’t just pay for access — they bring policy proposals with them. These are not vague suggestions; they’re model bills, often drafted by insurance associations or think tanks, that map out exactly how laws should change.
Narrative Control
The message to lawmakers is always framed around catastrophes, fraud, and litigation risk: “We’re under siege. Our losses are going up. We need flexibility.” That narrative gives their proposals legitimacy — even when internal financials might look strong.
Regulatory System Leverage
By pushing for certain legislative changes, insurers protect their bottom line. More power over rate-setting, fewer obstacles to deny or narrow claims, and less transparency around cancellations or non-renewals all contribute to stronger profits — and weaker protections for homeowners.

Real Legislative Battles in Texas: What’s Going On Now

To show how powerful this lobbying is, let’s look at some specific bills and proposals from recent Texas legislative sessions.

Senate Bill 1643: Rate Increases Under the Microscope

What it is: SB 1643 would require insurers to obtain approval from the Texas Department of Insurance (TDI) for rate changes over 10%. (Texas Policy Research)
Why insurers push back: Under Texas’s current “file-and-use” system, insurers can raise rates immediately after filing — giving them flexibility.
What insurers are saying: Industry groups argue that prior approval would disrupt the market, and that rate increases must reflect the cost of real losses. (Insurance Business America)
What proponents argue: Supporters call it a necessary check, especially as premiums become unaffordable. (Dallas News)
Bill status & timeline: The Senate passed it in 2025. (Insurance Business America)

Takeaway: This bill is a classic example of pushback against the “file-and-use” system — a system insurers favor because it lets them set rates quickly, with limited immediate oversight.

Sen. Mayes Middleton’s Disclosure Bill: Why Your Policy Was Canceled

What it would do: Require insurers to automatically disclose why they cancel or non-renew homeowner policies. (Houston Chronicle)
Why insurers resist: They claim it’s administratively burdensome, and that the reasons (like “pulling out of the area”) often aren’t legally actionable. (Houston Chronicle)
Why it matters: Without this transparency, homeowners are left in the dark — unable to fight back or even understand why coverage disappears.

House Bill 345: Disputing Damage After a Loss

What it proposes: Establish an appraisal process for disputed residential property claims — a legal path to resolve conflicts about how much damage is worth. (LegiScan)
Implications for insurers: This process could limit insurer control over underpaying claims, making them more accountable when assessments are challenged.
Implications for homeowners: Provides a more structured, potentially fairer way to fight lowball repair estimates without going straight to litigation.

Why This Matters to Homeowners

Rate hikes are not inevitable — they’re politically engineered. The push for SB 1643 shows how insurers try to preserve their ability to raise prices quickly.
Lack of transparency is intentional. Without laws compelling insurers to explain cancellations, many policyholders never know why they were dropped.
Legal protections are undercut. Bills like HB 345 matter because they shape how disputes are resolved — and who wins in those disputes.
Financial burden shifts to you. When insurers control rate-setting and claims processes, you bear more risk: higher premiums, more denied or underpaid claims, and fewer legal levers to push back.

Case Study: The Impact in Real Life

A 2025 analysis found that for many Texas homeowners, nearly 47% of insurance claims are closed without any payment. (Houston Chronicle)
Texas’s “file-and-use” system means insurers can raise rates immediately, while consumers wait for regulatory review — putting homeowners on the hook before those increases are vetted. (Texas Comptroller)
Though SB 1643 has passed the Senate, insurers continue to fight transparency reforms — suggesting they view tighter regulation as a serious threat to their model. (Houston Chronicle)

What Homeowners Can Do (and What Your Company Can Teach Them)

Demand transparency — Encourage homeowners to push their insurers for written explanations when their policy is canceled or renewed on unfavorable terms.
Follow Texas legislation closely — Bills like SB 1643 and HB 345 directly impact how much protection they have. Educate clients on these debates, because the more they know, the more power they have.
Document everything — If they file a claim, log every communication, estimate, and offer. When appraisal or regulatory review comes into play, that documentation matters.
Engage with consumer advocates — Support groups, non-profits, or legal aid organizations that lobby for insurance reform. These organizations often have direct lines to the legislature.
Shop smart — While you educate, still encourage clients to get quotes from multiple carriers. Rate pressure and legislative risk are real — but so is competition.

Final Word

Insurance companies don’t just set prices — they shape the laws that let them raise prices, deny claims, and limit recourse. In Texas, that influence is on full display:

From drafting lobbying campaigns to developing model legislation,
To resisting rules that require accountability and transparency.

As a company that serves homeowners, our mission isn’t just to fight insurance — it's to expose how the system is built. Empowering our clients with knowledge, tools, and resources so they can make informed decisions — not just pay whatever the insurer says.