Rejected Emails Cause Headaches for Texas Insurance Regulators

The Texas Department of Insurance recently was inundated by hundreds of emails regarding homeowner insurance rates, and the department was tasked with finding out why the majority of them were rejected by agency’s computer servers.

TDI reported that it began receiving the emails on July 13, which were addressed to Commissioner Eleanor Kitzman. After hundreds of emails went through, the state agency’s email server apparently began rejecting the rest.

“The messages were identical and contained comments and suggestions concerning the state of the property insurance marketplace in Texas. Commissioner Kitzman reviewed these suggestions with her staff on July 17, and is in the process of gathering the necessary data and information to respond to each consumer in a substantive and comprehensive manner,” the department’s release stated.

“TDI welcomes all feedback from the Texas insurance consumers we serve and endeavors to respond to all communications as quickly as possible,” the agency added.

Alex Winslow with Texas Watch, a consumer group that initiated the mass email campaign, said more than 300 emails went through, and at least 900 others were rejected, according to Associated Press reports.

Winslow shared the content of the email with Insurance Journal. It responds to comments made by Commissioner Kitzman during a hearing held by the Senate Committee on Business and Commerce. Kitzman indicated in that testimony that there “does not seem to be a ‘silver bullet here'” to provide immediate relief for the high homeowner insurance rates in the state.

The email in question is posted below:

It is troubling that you claim that there are no immediate solutions that would help consumers with high cost, low coverage home insurance policies.

Nearly 10 years ago, Texans were promised relief which has never materialized. Now, you tell us that we have to wait for years — or decades — longer before our families might get some relief. And, you say there is nothing you can do to help us right now.

I urge you to consider commonsense, market-based solutions to improve the market for policyholders:

• Empower consumers to generate real price competition by requiring carriers to offer a standard policy, allowing consumers to make meaningful apples-to-apples comparisons.
• Stop insurance companies from shifting more of the burden onto consumers by continually raising deductibles.
• Make the market more transparent for consumers by requiring insurance companies to clearly state what is and is not covered, disclose the true dollar-amount of deductibles, and provide easy access to review the current policy and endorsements in effect.
• Standardize insurance rate filings so that carriers are required to give all relevant information and justifications for rate hikes with their initial filing.
• End exotic off-shore reinsurance arrangements that allow insurance companies to pad their profits.
• Rein in excessive underwriting profits and administrative costs from insurance companies.
• Require insurance carriers to rely on legitimate long-term loss experience when estimating weather-related risks. One bad storm does not justify a steep rate hike.
• Closely review the entire market to ensure current rates are justified.

These are just a few recommendations that would provide immediate relief to Texas families.”