Connect with us

Austin, TX

Better Luck Next Year? • The Austin Chronicle

Published

on

Better Luck Next Year? • The Austin Chronicle


Credit: Map via redistricting.capitol.texas.gov

Mapping Chaos

Six months into his second term as president, Donald Trump was nervous about the chances for keeping a Republican majority in the U.S. House of Representatives after the 2026 elections. So in July, Trump demanded that Texas Republicans discard decades of precedent and redistrict the state’s congressional districts in the middle of the decade. Texas Republicans were more than happy to deliver.

The maps redrew the districts of some of the most effective Black leaders in the country and crammed Austin’s 35th and 37th congressional districts into one, to remove either Rep. Greg Casar or Rep. Lloyd Doggett from office. To stop the redistricting, 56 Democratic House members, including Austin Reps. John Bucy, Gina Hinojosa, James Talarico, Donna Howard, and Lulu Flores, left Texas to deny Republicans the quorum necessary to finalize the gerrymander.

The Dems stayed away two weeks, long enough to educate voters nationwide about what was happening. Then they returned and were steamrolled by Republicans, who approved the redistricting plan on a party line vote. (The GOP majority twisted the knife by enacting punitive new measures to discourage future resistance from their colleagues.) A federal court blocked the gerrymandered map last month, ruling that it illegally discriminates against people of color. But the U.S. Supreme Court temporarily paused the lower court’s ruling while the legal battle rages on, allowing the map to stand for the midterm election. For now at least, Trump got exactly what he asked for. – Brant Bingamon


Aftermath of the July 4 floods in Kerr County Credit: Sarah Wolf

Unthinkable Loss

Within hours, a torrent of rain quickly overwhelmed the banks of the Guadalupe River over the Independence Day weekend. Fast-rising floodwaters and swollen rivers destroyed multiple towns and took over 135 lives, mostly in Kerr County, to become one of the most devastating natural disasters in Texas history. At Camp Mystic, an all-girls sleepaway summer camp along the Guadalupe in Hunt, 25 children and three staff members were lost in the deluge.

In those first days, the casualty count rose horrifically, and then slowed as the missing were accounted for. In the days and weeks that followed, Central Texans pitched in to aid their neighbors, first by clearing debris and searching for survivors, then by gathering resources and raising funds for those impacted. Then, Texans began to point to their lawmakers, asking what the state should have done to prevent the tragedy. In the second special legislative session, the Texas Legislature addressed some of those failings, investing in flood sirens and evacuation plans. The parents who lost their children at Camp Mystic are still in an active lawsuit against the summer camp, suing for failing to evacuate the campers, gross negligence, and wrongful death, even as the camp seeks to reopen next summer.  – Sammie Seamon

Advertisement

Credit: Getty Images

The Lege Marches Texas Farther Right …

With the GOP now even more empowered to pass legislation, no matter how overtly some bills appeared unconstitutional and aligned with far-right, Christian nationalist values, the 89th legislative session (and the two special sessions that followed) greenlit a host of bills targeting public education, the immigrant and queer communities, abortion access, and more.

A requirement to hang the Ten Commandments and dedicate prayer and Bible reading time in public school classrooms. A law that blocks Texans from using the bathroom aligned with their gender identity in public schools, universities, and any government-run building. Police must partner with ICE in 2026. A bill that takes away librarians’ authority to approve school library books, when ever-more titles containing diverse perspectives have been banned by the state. The creation of a bounty hunter system that allows a next-door neighbor to tattle on people trying to access abortion pills. While most laws went into effect Sept. 1, more became effective as recently as Dec. 4, and advocates say their effects have already begun to be felt by Texans. – Sammie Seamon


Credit: Zeke Barbaro / Getty Images (Abbott photo by John Anderson)

… and Abbott Finally Gets His School Vouchers 

For Texas students, parents, and school districts, another catastrophe in this year’s legislative session was the state’s creation of private school vouchers. The voucher bill, signed into law in May, will allow parents to take approximately $10,000 of taxpayer money per child from the state’s coffers to spend on their children’s private schooling. Applications will open in the spring.

The voucher vote was an epochal loss for public school supporters who had fought since the 1950s to stop previous versions of the measure. For the Republican leaders who championed it, particularly Gov. Greg Abbott, the vote concluded a years-long campaign to impose their will not just on the electorate, who were never hugely supportive of vouchers, but also on their fellow Republicans, particularly those from rural areas, who had crossed the aisle to vote with Democrats to keep vouchers from becoming law. 

Advocates say the program will slowly drain funds from schools that are already underfunded, hurting poor students and undermining public education in general. The state allocated $1 billion for the program in 2026, but that figure is expected to balloon to $5 billion by the beginning of the next decade. – Brant Bingamon


Credit: Getty Images

One Big Barfing Sound

If there are two traits you can count on from the Trump administration, they are stupidity and cruelty. First, the name of budget reconciliation measure HR 1 was nonsensical: The president’s lackeys have called it One Big Beautiful Bill, making it the nonsensical One Big Beautiful Bill Act when it passed because they are idiots who don’t understand how words or the legislative process work. But beyond the stupidity was the cruelty of vast spending cuts, including an estimated $155.3 million gouging of promised finances for the City of Austin alone. The list included FEMA grant to improve flood protection for power and water treatment plants, money to cap and cover stretches of the I-35 project, and an all-out attack on plans to decrease the city’s reliance on fossil fuels, plus there’s the massive local impact of cutting funds for federal agencies and programs like Medicaid and SNAP. Of course, it’s Texas’ fault: HR 1 was authored by Lubbock Republican Jodey C. Arrington. – Richard Whittaker


I-35 as seen from the 12th St. bridge Credit: Jana Birchum

Stuck in Neutral

Maybe we’re just getting older and grumpier, but we seem to encounter construction on every trip we take around town. Let’s not talk too much about the I-35 expansion, which will be a Top 10 story for the next decade or so (sigh). To make matters worse, the prospect of those caps over the highway are looking less impressive after the fed took back $100 million slated for the project (another casualty of the OBBBA). Remember the flurry of excitement when the Travis County Commissioners Court voted in October to fund a study on the feasibility of a rail line between ATX and SATX? Last we heard, that plan could be completed before the I-35 project but was counting on a big investment from the federal government. Sounds pretty unfeasible to us. Those with an even better memory will remember Project Connect’s rail plan that locals voted to fund in 2020. This year the city solicited proposals for the multibillion-dollar final design and construction contract. Fingers crossed. – James Renovitch


Council member Vanessa Fuentes (center) and other attendees react to election results during the Prop Q Election Night Party at The Brewtorium Brewery & Kitchen on November 4, 2025 Credit: John Anderson

Prop Flop

It didn’t seem particularly controversial when the Council approved a budget last August which necessitated a tax rate election. The election, dubbed Proposition Q, asked voters to raise their property taxes by an average of around $200 per year.

But Prop Q got controversial in a hurry. In October, the Statesman published a series of articles questioning spending by city leaders on lunches and travel and focusing on the city’s $1 million logo. Opponents of Prop Q threatened lawsuits against the political action campaign supporting the measure, argued that the higher taxes would worsen the city’s affordability crisis, and complained that the money generated by Prop Q would support the city’s “homeless industrial complex.” Gov. Greg Abbott kept the focus on the homeless, sending state troopers to clear out homeless camps in the weeks before the vote. Attorney General Ken Paxton threatened to sue the city’s largest provider of housing for homeless people, Foundation Communities, falsely suggesting that the group’s donations to the Prop Q PAC “might be illegal.”

In the end, Prop Q was defeated 63-37%. A revised city budget passed on Nov. 20, which reduced funding for homelessness, public safety, parks, and social services. Now, city leaders wait to see what they’re going to have to cut next year. – Brant Bingamon

Advertisement

Demonstrators outside of AISD’s headquarters Credit: Sammie Seamon

AISD Makes Unpopular School Closure Decisions

In early September, the Texas Education Agency told Austin ISD administration that 33 of its campuses had fallen into dangerous waters, receiving failing accountability scores from the state agency for low STAAR performance. The TEA also gave 24 schools turnaround plans, giving them the option to close down or totally rehire faculty and revamp curriculum. The district has also found itself in dire financial straits: With declining enrollment, a lack of state funding, and half of their budget paid out in recapture payments, they’re predicting to run out of money by next school year. If the district fails to raise student performance, the TEA could take over management of AISD, as they did Fort Worth ISD in October.

In early October, the district decided to propose school closures to save money and respond to the TEA’s requirement for turnaround plans. In the weeks that followed, students and their families protested the dismantling of their neighborhood school communities, hoisting signs and chanting outside of TEA and AISD’s headquarters. Then, three schools were taken back off the closure list, leading to accusations that the district was favoring the loudest parents (which the district denied). On Nov. 21, after hours of rigorous debate, the AISD Board of Trustees ultimately voted to close eight elementary schools, two middle schools, and International High School next school year. – Sammie Seamon


Credit: Getty Images

ICE’s Dastardly Drive to Deport 

This year has been unlike any other for a multitude of reasons, many of which can be attributed to the Trump administration’s aggressive decision-making – one of the most intense being the rollout of ICE agents across the nation, which Trump promised during his 2024 campaign. He stayed true to his word, deploying ICE agents on the very first day following his inauguration. According to the Transactional Records Access Clearinghouse, Texas currently has the most ICE detainees – 17,696 as of Nov. 28 – in the nation. 

On April 1, ICE and other federal and state agents raided an Austin suburb Airbnb, where nearly 50 people were arrested, some of whom were children. The raid came as an attempt to deport members of the Venezuelan gang Tren de Aragua, the agencies involved claim, though advocates have said there has been no evidence provided that suggests any of the half a hundred individuals had any gang affiliation, but rather were targeted merely based on physical appearance. 

Whether it’s 50 potential gang members or just one immigrant, such as the Boston student who was planning to fly home to Austin to see her family for Thanksgiving, only to be arrested and deported after she arrived for her flight, ICE has been relentless in its forceful attempts at deportation throughout the year. – Joe Ellett


Credit: Zeke Barbaro / Getty Images

Water Woes (and a Win)

It’s now a well-known and troubling truth: Texas, with our projected growth and draining aquifers, is running out of water. Moreover, the move of big tech to Austin and greater Central Texas is placing even more strain on our energy grid and water resources: By 2030, data centers are projected to multiply roughly tenfold across the state, with the average center using 300,000 gallons of water a day. Texas, which is currently experiencing higher temperatures than during the Dust Bowl, will face only further water loss from evaporation and hotter soil as drought conditions worsen with climate change.

On Nov. 4, Texans voted on Prop 4, a 20-year investment in the future of our state’s water availability, one that will funnel $1 billion annually out of state sales tax revenue toward water conservation and production projects. These projects include fixing leaky pipes, wastewater reuse, seawater desalination, and produced water reuse from fracking, plus others listed in the State Water Plan. – Sammie Seamon


Credit: Getty Images

Burnt Orange Bleeds Red 

When far-right thought leader Chris Rufo urged conservatives to “lay siege” to UT at a campus talk in 2023, it was hard to imagine anyone taking him seriously. Two years later, it’s remarkable how much Rufo’s allies have accomplished. 

Last year, UT eliminated diversity, equity, and inclusion programs and restricted students’ rights of free speech and assembly. Professors and administrators left in unprecedented numbers, including the president and provost, who were replaced with allies of Gov. Greg Abbott and Lt. Gov. Dan Patrick. 

Advertisement

This year, Republicans approved SB 37, which ended the longstanding practice of including professors in choosing the university’s leaders and setting policy for the school, handing that power over to the board of regents. SB 37 also created the “Office of the Ombudsman,” an overseer appointed by Gov. Greg Abbott to investigate professors accused of violating state law. 

SB 37 also gave the board of regents the power to decide which courses are taught at UT. The board is currently reviewing the content of hundreds of courses concerned in one way or another with gender and sexuality. Professors are bracing for changes in the curriculum and for the consolidation of programs like Women’s and Gender Studies, African Diaspora Studies, and other ethnic studies in the College of Liberal Arts. They’re also awaiting a decision from university leaders on the Trump compact, an offer promising federal research money in exchange for supporting Trump’s political agenda. Of the nine universities offered the deal, only UT expressed enthusiasm, demonstrating how far right the school’s leaders now lean. – Brant Bingamon

A note to readers: Bold and uncensored, The Austin Chronicle has been Austin’s independent news source for over 40 years, expressing the community’s political and environmental concerns and supporting its active cultural scene. Now more than ever, we need your support to continue supplying Austin with independent, free press. If real news is important to you, please consider making a donation of $5, $10 or whatever you can afford, to help keep our journalism on stands.





Source link

Advertisement
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Austin, TX

New podcast searches for accountability after 2025 Central Texas flood

Published

on

New podcast searches for accountability after 2025 Central Texas flood


A long holiday weekend and America’s 250th birthday are giving Central Texans even more reasons to celebrate this Fourth of July. From fireworks over Lady Bird Lake and Willie Nelson’s annual picnic to hometown parades and rooftop parties, there are plenty of ways to spend the day around the Austin area.

Here’s a look at some of the biggest events, from Austin’s signature Star-Spangled Fest to neighborhood traditions and Hill Country celebrations. Unless otherwise noted, all events take place Saturday, July 4.

The main events

Star-Spangled Fest
Auditorium Shores & Long Center, 900 W. Riverside Dr.
Austin’s signature Fourth of July celebration stretches from morning to night as the city marks America’s 250th anniversary. The day begins with The Morning Spin from 10 am to 1 pm, featuring house music, craft coffee, cocktails, local vendors, and food trucks. The evening festival returns at 4:30 pm with kids’ activities, food trucks, and performances by Austin soul-funk favorites Tomar & the FCs, country singer Shelby Stone, a Veteran Recognition Celebration, and the Austin Symphony Orchestra’s annual patriotic concert before fireworks over Lady Bird Lake at 9:45 pm. The concert and fireworks will also be simulcast on KMFA 89.5. A number of parking garages are open around the park. General admission is free. VIP Lawn Access starts at $45, while reserved tables and private cabana experiences range up to $2,500. Tickets and VIP packages are available through the Star-Spangled Fest website.

Advertisement

Several downtown hotels and rooftops are offering elevated alternatives to the crowds below along Auditorium Shores.

  • P6 at The Line Austin is hosting its “Creole Surf Riot” celebration with live music by Louisiana Surf Department, Creole-inspired food stations, and two complimentary drinks. Early bird tickets start at $75, with general admission at $90.
  • The Loren at Lady Bird Lake is celebrating with a waterfront barbecue, curated beverages, and live music by Working Title. Reservations are available from 6-10 pm, with the band performing from 6-11 pm. Admission is $98 per person, plus a 17 percent gratuity. The hotel recommends making reservations in advance, as last year’s Fourth of July celebration sold out.
  • Otopia Rooftop at The Otis Hotel in West Campus is hosting a Fourth of July party from 7 -11 pm, featuring specialty cocktails with Still Austin Whiskey Co., a complimentary welcome cocktail, light bites for purchase, and giveaways. Tickets start at $23.18. The rooftop offers skyline views, though organizers note the downtown fireworks display is not visible from the venue.

Willie Nelson’s Fourth of July Picnic
Germania Insurance Amphitheater, 9201 Circuit of the Americas Blvd., Del Valle
Fresh off his 93rd birthday, Willie Nelson returns to Circuit of The Americas for the latest edition of his annual Fourth of July Picnic, a Texas tradition spanning more than five decades. This year’s lineup features Willie Nelson & Family, bluegrass phenom Billy Strings, alternative rock legends Wilco, Rock & Roll Hall of Famer Sheryl Crow, Lukas Nelson, Stephen Wilson Jr., Rodney Crowell, Margo Price, and Lily Meola. The evening concludes with fireworks. Gates open at 2:30 pm and music begins at 3:30 pm. Most tickets are priced around $100, with options ranging from reserved seating to pit tickets and VIP packages. Tickets, VIP packages, and the full event lineup are available on Willie Nelson’s official website.

Hill Country Galleria Independence Day Festival
12700 Hill Country Blvd., Ste. T-100, Bee Cave
Families looking to avoid the downtown crowds can head west for one of the area’s biggest free celebrations honoring America’s 250th birthday. More than 40 artisan vendors, carnival rides, water games, and complimentary face painting fill the afternoon before an evening of live music. School of Rock opens the entertainment at 4 pm, followed by CAZAYOUX, Jeska Forsyth, Jo James, and Austin Latin rock veterans Vallejo. Then fireworks complete the event. Attendees are invited to bring a lawn chair or blanket. The festival runs from 4-10 pm, with fireworks scheduled for about 9:40 pm. Admission and parking are free.

Red, White & Buda
Buda Amphitheater & City Park, 204 San Antonio St., Buda
Buda turns Independence Day into an all-day celebration, beginning with the community’s annual Bike Parade at 9 am. Festivities resume at 4 pm with a DJ, bounce houses, a splash pad, food vendors, a vendor market, cornhole, sand volleyball, and rock climbing. Live music begins with Elle Townley at 6:30 pm, followed by Shinyribs, the Gulf Coast soul and swamp-funk band led by former Gourds frontman Kevin Russell, at 7:40 pm. The evening concludes with fireworks at about 9:15 pm. Admission is free.

Free neighborhood parades and hometown traditions

Northwest Austin Civic Association
Austin’s largest neighborhood Independence Day parade happens in the North Austin Civic Association, at the 53rd annual Fourth of July Parade and Freedom Fest. The festivities begin with a community breakfast at 7:30 am, followed by the parade at 9 am. Austin Mayor Kirk Watson will serve as grand marshal as decorated bicycles, antique cars, marching bands, community groups, and the popular Ladies Lawn Chair Brigade wind through Northwest Hills before the Freedom Fest continues with family activities.

Advertisement

Members of the Northwest Austin Civic Association’s Arm Chair Brigade gather with parade grand marshal Council Member Alison Alter before the neighborhood’s annual Fourth of July parade in Northwest Austin.Alison Alter/Facebook

Cedar Park
Cedar Park’s Sparktacular returns to Milburn Park with live music, carnival rides, inflatables, food trucks, and fireworks at 9:30 pm.

Georgetown
Georgetown’s celebrations last all day with amusement rides and games, a kiddie parade, arts and crafts booths, food vendors, live music, and a fireworks show to round it all out.

Lakeway
Lakeway’s Fourth of July Celebration begins with its annual parade at 8:30 am, followed by family activities before the city’s evening fireworks display.

Leander
Leander is getting things started early with Liberty Fest on July 3. There will be live music and food, plus activities for kids and fireworks to end the day.

Advertisement

Pflugerville
Pflugerville’s Pfireworks lights up Typhoon Texas with live music, food vendors, family activities, and one of the area’s largest fireworks displays.

Round Rock
Just north of Austin, Round Rock’s Frontier Days begins with the annual Sertoma Independence Day Parade at 8:30 am along Mays Street. Giant helium balloons, festive floats, marching bands, and community groups kick off a full day of carnival rides, pig races, live music, and festival food before the evening’s fireworks show.

America250

Want to keep celebrating America’s 250th birthday? The Fourth of July is only the beginning of the nation’s yearlong semiquincentennial celebration.

Texas America250 exhibit
Lorenzo de Zavala State Archives and Library Building, 1201 Brazos St.
This exhibit next to the Texas Capitol spotlights the Lone Star State’s outsized role in American history through historic photographs, maps, artifacts, sheet music, state records, and other treasures from the State Archives. From cowboys to astronauts, and from Beaumont to Big Bend, the exhibit explores how Texas helped shape the nation. The exhibit is on view throughout 2026.

Advertisement

Other things to see at the archives include:

For even more, the Texas America250 events calendar lists celebrations taking place across the state throughout the year.



Source link

Continue Reading

Austin, TX

Safehold backs 336-unit Austin housing project due in 2028

Published

on

Safehold backs 336-unit Austin housing project due in 2028


NEW YORK, June 25, 2026 /PRNewswire/ — Safehold Inc. (NYSE: SAFE), the creator and leader of the modern ground lease industry, has closed on a ground lease for the development of an Affordable Housing community in Austin, Texas. The Low-Income Housing Tax Credit (LIHTC) development will provide 336 total units upon delivery in 2028. The project will be developed by The NRP Group, one of the most active developers of Affordable Housing in the United States and a repeat Safehold customer.

“We’re thrilled to expand our relationship with the team at NRP and our focus on the Affordable Housing market in Texas,” said Steve Wylder, Safehold’s Head of Investments. “We’ve established an innovative new ground lease structure for the Texas markets and are pleased our capital could play a role in moving this high-quality development forward.”

The transaction represents Safehold’s second transaction with NRP in Austin this year, both new construction 4% LIHTC developments. The project is located in northeast Austin, a high-growth region with strong long-term fundamentals and demand for high-quality housing product. The development is supported by tax credit equity from Huntington Bank, with construction and permanent financing arranged by Berkadia. 

Advertisement

Safehold established a dedicated Affordable Housing team in 2025 and has continued to expand its investment into the sector. Additional information is available at www.safeholdaffordablehousing.com.

About Safehold:

Safehold Inc. (NYSE: SAFE) is revolutionizing real estate ownership by providing a new and better way for owners to unlock the value of the land beneath their buildings. Having created the modern ground lease industry in 2017, Safehold continues to help owners of high quality multifamily, affordable housing, office, industrial, hospitality, student housing, life science and mixed-use properties generate higher returns with less risk. The Company, which is taxed as a real estate investment trust (REIT), seeks to deliver safe, growing income and long-term capital appreciation to its shareholders. Additional information on Safehold is available on its website at www.safeholdinc.com.

About The NRP Group:

The NRP Group is a vertically integrated developer, owner, builder, and manager of best-in-class multifamily housing with a mission to create exceptional rental housing communities for individuals and families, regardless of income. Since its founding in 1994, NRP has developed more than 62,000 apartment homes and currently manages over 30,000 residential units. Through its disciplined approach to vetting opportunities, NRP has established a track record of delivering impressive returns for investors. The company’s formidable size and depth of talent provide the experience and infrastructure necessary to execute developments of varying degrees of complexity and scope in both urban-infill and suburban locations, including market-rate, affordable, mixed-income, and senior housing. The NRP Group has been consistently named a largest developer and builder in the U.S. on the NMHC “Top 50” lists, the Top 5 on the Multi-Housing News’ “Top Multifamily Developers” list, named a Top Affordable Housing Developer by Affordable Housing Finance, and has won three NAHB Pillar awards since 2020 for Development, Construction and Ones to Watch. The NRP Group has become the top multifamily developer in the U.S. that creates both affordable and market-rate housing at a national scale. Based on over 30 years of experience and expertise, NRP provides construction and property management services to outside owners and developers. For additional information, visit www.nrpgroup.com.

Advertisement

 

(PRNewsfoto/Safehold)

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/safehold-closes-second-affordable-housing-ground-lease-in-texas-302809796.html

SOURCE Safehold



Source link

Continue Reading

Austin, TX

Texas insurance costs surge 79% in six years as lawmakers question AI impact on rates

Published

on

Texas insurance costs surge 79% in six years as lawmakers question AI impact on rates


AUSTIN (Nexstar) –  During a Texas Senate Business and Commerce hearing Wednesday, lawmakers heard invited testimony examining soaring property and casualty insurance costs. Testimony focused on the need for more affordable options and the need to address the role of AI.

Increased costs

Amanda Crawford, the Commissioner of Insurance at the Texas Department of Insurance (TDI), acknowledged the reality of rising insurance costs for everyday Texans.

“The past few years have been very, very difficult. The average annual homeowner premium in Texas has increased from under $2,000 in 2020 to over $3,500 today. It’s a 79% increase in six years. That is a tremendous burden for Texans, especially for a necessary product like home insurance,” Crawford told lawmakers Wednesday.

Crawford went on to clarify that this increase can be attributed to increases in home values and claim costs related to severe weather.

Advertisement

“Annual homeowners’ losses averaged 5.5 billion from 2015 to 2020, rising to 9.1 billion from 2021 to 2025.” Crawford went on to say that “Last year alone, the National Weather Service recorded 902 hailstorms in Texas. The next closest state, Kansas, had 375.”

Holding insurance companies accountable

Crawford clarified that the TDI requires insurance companies to elaborate on their filings to ensure that Texans are not subject to unfair practices and prices.

“My expectations are that every rate filing submitted to TDI gets a careful review. We examine every statutory filing for statutory compliance. We verify the math, we scrutinize assumptions, we make them show their work”

According to the Texas Insurance Code, the rate review process conducted by the TDI does not explicitly focus on affordability.

“There is not a purpose in there around affordability. It is about driving market competition. It’s about making sure they’re not excessive, but then they’re also adequate. And it’s about having market forces drive the rates that are filed. So I think that’s an interesting perspective when you look at it, because that really frames the whole rate review process as it has been put into law.”

Advertisement

Insurance company officials say they are also focused on affordable costs.

“Our industry is not just saying, hey, legislators go fix all this. We are working all the time to bring down costs. It’s a good business decision because it helps us be more competitive,” said Scot Kibbe, the Vice President for State Government Relations at the American Property College for Insurance Association.

Concerns of price surveillance

Senator Nathan Johnson, D-Dallas, questioned whether insurance companies may be using technological advances, such as AI, to participate in price surveillance, a tactic to maximize profits.

“It sounds like, to some extent, every industry, with the advent of technological advantages we didn’t use to have, is able to create a special price just for you to find out your breaking point,” Johnson said.

David Bolduc with the Office of Public Insurance Counsel noted that there are protections in statute against companies charging different prices for the same coverage. But he added that the practice can be difficult to detect.

Advertisement

“I don’t know that TDI has the ability to monitor that. I mean, we hear about it,” Bolduc said in response to Johnson. “I think, if you could do something in statute that would allow us to report it, or would allow TDI to take action about it, that might be useful in terms of monitoring it,” Bolduc added.

Earlier this month, the TDI released a “use of artificial intelligence” bulletin to set expectations on how “regulated entities will govern the development, acquisition, and the use of AI technologies in their operations.”

Crawford says this bulletin will help address price surveillance concerns by reminding companies of Texas Insurance codes related to unfair discrimination and deceptive practices.

“That’s one of the reasons for putting out the AI bulletin, the expectations and the consumer protection around the use of that data, and what they are using that for,” Crawford said.

Potential solutions

Bolduc called on lawmakers to reexamine AI’s role in the industry. He also asked lawmakers to look into making coverage changes more transparent.

Advertisement

“It might be useful to continue looking for ways to be transparent about coverage changes. Notices of material change don’t seem to be working particularly well in the sense that we get a lot of phone calls from people saying they don’t understand what happened to them,” Bolduc said Wednesday.

Billy Crocker, Senior Vice President of Alliant Insurance Services, says the best way to fix pricing is to drive up competition between insurance companies.

“I think creating a lot of competition is the best way to drive this down, both for personal and business lines,” Crocker told lawmakers. “And then that brings the opportunity for access.”



Source link

Advertisement
Continue Reading
Advertisement

Trending