Brief History of the Texas Homeowners Market, 1993 - Present
In 1993, Texas moved from a promulgated rate framework to a Benchmark system to regulate homeowners insurance rates ( see: Homeowners Insurance Regulation: Past and Present). Under the Benchmark system, also known as a "flex band" system, a base rate was promulgated each year by the Commissioner of Insurance. Insurers could file and use a new rate as long as it was within +/- 30% of the promulgated rate; above or below 30% would require prior approval from the department. An important exception to this rate regulation system was that Lloyds and reciprocal exchange type companies, which had historically written high risk business, were exempt from rate regulation.
- The Mold Crisis (2000 -2003)
- Legislative Reform (2003)
- Hurricane Activity (2004 - 2008)
Previous: The Rate Regulation Process Start Timeline: The Mold Crisis (2000 - 2003)