As our state legislature meets to consider stricter controls of our insurance companies, data just released show that Texas home insurers racked up some of the biggest profits ever last year.
No wonder. Our home insurance rates are the highest in the U.S. And only 48.4 per cent of premiums were paid out as claims. A loss ratio of 60% is considered profitable.
These companies collected a whopping $5.7 billion in premiums and only paid out $2.7 billion in claims.
And State Farm, the largest insurance company, continues to fight the state’s order to refund hundreds of millions of dollars in overcharges to its customers.
Consumer groups are trying to get the law changed to require these companies to first get approval from the state before they up their rates.
I do not handle homeowners claims, but wanted to help disseminate this blatant abuse of the system.