Governor Abbott reminds insurers of Texas price optimization ban - Waco Tribune-Herald

Texas Gov. Greg Abbott directed the state's insurance regulator to remind insurers this week that "price optimization" is illegal under Texas law, a move aimed at pushing down property insurance costs that have climbed 79 percent over the past six years, more than twice the rate of inflation.

The Texas Department of Insurance sent the reminder to all TDI-regulated carriers following Abbott's directive. Price optimization is the practice of setting premiums based not on a customer's actual risk, but on how much extra money the company thinks that customer will pay before shopping around. Texas law requires insurers to base rates on risk factors only, and TDI said it will take enforcement action against any company found using the practice.

For homeowners in Lubbock, where hail seasons and West Texas wind have already made finding affordable coverage a headache, this matters. If your insurer has been quietly raising your renewal rate because you kept paying without switching, that is exactly the kind of calculation this ban targets. The directive does not automatically lower anyone's bill, but it puts companies on notice that TDI is watching.

Abbott framed the move as a consumer protection push rather than a rate rollback.