Are Insurers Leaving Texas?
Catastrophic Weather Losses
In 2023, Texas experienced $28 billion in weather-related claims, with Progressive reporting that 40% of its recent storm losses occurred in Texas. The state faced record-breaking disasters, including the Smokehouse Creek Fire and Hurricane Beryl, which caused $4 billion in insured losses in 2024. Storms in the Dallas-Fort Worth area in June 2023 alone caused an estimated $7 billion to $10 billion in insured losses. This unsustainable loss pattern has forced carriers to retreat.
Multiple Major Carriers Withdrawing
Farmers Insurance announced in 2023 a substantial reduction in new homeowners' policies across Texas, while Foremost Insurance ceased writing and renewing new policies just weeks before Hurricane Beryl struck. Progressive became the latest major insurer to temporarily restrict new homeowner business in certain parts of Texas, citing the need to reduce "the impact from weather-related volatility." Liberty Mutual has implemented restrictive underwriting in coastal counties, effectively ceasing new property policy issuance in many hurricane-exposed regions.
Rising Costs and Reduced Profitability
Insurance companies are struggling to provide the capacity they need due to soaring costs, with some clients seeing premiums jump from $2,000 to $10,000 in a single year with no claims filed. The cost of asphalt shingles, one of the most common roofing materials, has skyrocketed 40% in the past five years. Combined with inflation and increasing reinsurance costs, carriers cannot maintain profitability in Texas's high-risk environment.
Geographic Risk Concentration
Coastal counties from Galveston to Cameron County have experienced the most significant carrier departures, with some areas seeing five or more major insurers cease new business, while the I-35 corridor from Dallas to San Antonio has faced increased restrictions following severe hail events. Insurers are concerned about risk concentration—one major storm could trigger thousands of simultaneous claims in densely populated areas, overwhelming their financial capacity and reserve requirements.
