Texas Insurance Industry – Governance, Risk and Compliance

The Texas insurance industry report provides a detailed analysis of the insurance regulations for life, property, motor, liability, personal accident and health, and marine, aviation, and transit insurance. The report specifies various requirements for the establishment and operation of insurance and reinsurance companies and intermediaries. It gives insurers access to information on prevailing insurance regulations, and recent and upcoming changes in the regulatory framework, taxation, and legal system in the state. The report also includes the scope of non-admitted insurance in the state.

What are the market dynamics in the Texas insurance industry?

The insurance industry in Texas is governed by the Texas Department of Insurance (TDI). They ensure fair competition in the insurance industry in order to foster a competitive market and ensure that the Insurance Code and any other Code related to insurance are executed properly. The key laws governing the insurance and reinsurance industry in Texas are the Texas Insurance Code, Texas Administrative Code- Title 28, and Transportation Code. The TDI regulates the Texan insurance industry, according to the provisions stipulated in the Texas Insurance Code.

What are the different types of licenses issued in the Texas insurance industry?

The different types of insurance licenses issued in the Texas insurance industry are life insurance license, non-life insurance license, license for reinsurance, and license for insurance intermediaries. 

Life insurance license in the Texas insurance industry: Insurers with a life insurance license can underwrite and sell insurance contracts related to risks such as life and annuities.

Non-life insurance license in the Texas insurance industry: Non-life insurers underwrite and sell contracts related to fire, marine, surety, disability, plate glass, liability, workers’ compensation, common carrier liability, boiler and machinery, burglary, credit, sprinkler, team and vehicle, automobile, aircraft, mortgage guaranty, insolvency, legal insurance and miscellaneous.

License for reinsurance in the Texas insurance industry: Reinsurers are insurance companies that sell policies to other insurers to protect them against the risks of unexpected financial losses. Section 493.051 stipulates that an insurance company authorized to operate in Texas is permitted to engage in reinsurance operations in the same insurance classes for which it is authorized.

License for insurance intermediaries in the Texas insurance industry: Insurance intermediaries, including agents and brokers, are the retail side of the insurance industry and act as mediators between the insurer and the insured. An intermediary sell, solicits and negotiates insurance contracts with customers on behalf of the insurance companies for compensation. In Texas, the insurance and reinsurance intermediaries including insurance agents, insurance brokers, and insurance adjusters must obtain authorization from the TDI to operate insurance mediation activities in the state.

Which other bodies oversee the Texas insurance industry?

The key bodies overseeing the Texas insurance industry market are the International Association of Insurance Supervisors (IAIS), National Association of Insurance Commissioners (NAIC), Federal Insurance Office (FIO), American Insurance Association (AIA), National Association of Mutual Insurance Companies (NAMIC), Property Casualty Insurers of America (PCI), Reinsurance Association of America (RAA), and Texas Captive Insurance Association (TxCIA).

International Association of Insurance Supervisors: The IAIS is a membership-driven global organization that represents insurance regulators and supervisors of more than 200 jurisdictions in more than 140 countries. The association also includes 135 observers representing industry associations, professional associations, insurers, reinsurers, consultants, and international financial institutions. The primary objectives of the IAIS are to promote effective and globally consistent supervision of the insurance industry. This develops and maintains fair, safe, and stable insurance industries for the benefit and protection of policyholders, contributing to global financial stability.

National Association of Insurance Commissioners: The NAIC is a voluntary association created in 1871 and governed by the chief insurance regulators from the 50 US states, the District of Columbia, and five US territories. It was created to address the need to coordinate the regulation of multistate insurers. The aim of the NAIC is to assist state insurance regulators in serving the public interest, achieving fundamental insurance regulatory goals, protecting competitive markets, facilitating the fair and equitable treatment of consumers, as well as promoting reliability, financial solidity, and solvency of insurance companies.

Federal Insurance Office: The FIO was established by the US Treasury Department in accordance with the Dodd-Frank Act. It is headed by a director appointed by the Secretary of the Treasury. The FIO is not a regulatory agency but plays an important role by providing expertise and advice regarding insurance to the Treasury Department and other US federal agencies. It works closely with the NAIC to engage in international discussions with US insurance regulators and to serve as an information source for the federal government.

American Insurance Association: The AIA is a property-casualty insurance trade organization. The AIA consists of 325-member insurance companies including personal and commercial auto insurance, commercial property and liability cover for small businesses, workers’ compensation, homeowners’ insurance, medical malpractice cover, and product liability insurance. The objective of the AIA is to coordinate among the states, federal and international levels and formulate policies beneficial for property and casualty insurance.

National Association of Mutual Insurance Companies: The NAMIC is a property and casualty insurance trade association representing mutual insurance companies across the US as well as in Canada. In addition to mutual insurance companies, the NAMIC’s members include stock insurance companies, reinsurance companies, and industry vendor companies. The objective of the NAMIC is to provide leadership in advocacy, public policy, public affairs, and member support services.

Texas insurance industry, by association

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Market report scope

This report provides detailed analysis of:

• The insurance regulatory framework in Texas.
• The rules and regulations governing insurance products and insurance entities.
• Key trends and developments pertaining to the state’s insurance regulatory framework.
• Rules and regulations pertaining to the establishment and operation of insurance businesses in the state.
• Taxation imposed on insurance products and insurance companies.

Reasons to Buy

• Provides FAQ-style analytical insights comprising 129 knowledge elements on insurance compliance applicable to the state.
• Gain insights into the insurance regulatory framework in Texas.
• Track the latest regulatory changes and expected changes impacting the Texan insurance industry.
• Gain detailed information about the key regulations governing the establishment and operation of insurance entities in the state.
• Understand key regulations and market practices pertaining to various types of insurance products.