Texas home insurers earned roughly 22 cents in profit for every dollar of premiums they collected in 2025 — their best year in two decades — according to preliminary financial data reported July 8, even as homeowners pay about 80% more for coverage than they did in 2020.
The numbers sharpen a question that touches nearly every Texas household: whether insurers will cut rates after years of double-digit increases. Texas is a file-and-use state, meaning companies can change rates without waiting for approval — and the Texas Department of Insurance has no authority to order them down.
Insurers paid $8.75 billion in claims last year while collecting just under $20 billion in premiums, according to TDI. Statewide rates rose an average of 4.3% in 2025, down from double-digit increases in recent years, but the average policy now costs about $3,500, up from roughly $2,000 in 2020.
Insurance Commissioner Amanda Crawford, appointed by Gov. Greg Abbott in February, told the Chronicle that companies should “strongly consider whether or not a rate decrease might be in order.” “We’re certainly seeing a leveling off,” she said. “We haven’t quite seen a decrease yet.”
The industry says one calm year proves little. “Part of what you’re looking at in 2025 is a really good weather year,” Beamon Floyd, executive director of the Texas Coalition for Affordable Insurance Solutions, told the Senate Business and Commerce Committee at a June 24 interim hearing on insurance affordability. “And that is not a thing that is reliable in the long term in Texas.”
A Public Citizen analysis published in June found the property and casualty industry nationally posted $68.7 billion in underwriting income in 2025, up from $25.3 billion the year before, alongside $111.6 billion in investment income. “Their profits are record-breaking and homeowner’s prices are not dropping overall,” report author Lois Parshley told the Chronicle. “This does not point to signs of a market in distress.”
The profit data lands amid mounting legislative attention. TDI testified in June that premiums have surged 79% in six years. In June the agency published a searchable database of rate filings and county-level premium data, a transparency push Crawford says should help Texans shop around. Lawmakers criticized the agency last session for collecting too little data on nonrenewals, then passed HB 2067, which requires insurers to report declinations, cancellations and nonrenewals to TDI by ZIP code each quarter.
TDI plans to publish a report later this year mapping insurance availability by ZIP code, Crawford said. The Business and Commerce Committee is due to issue interim recommendations before the Legislature convenes in January 2027 — and an active hurricane season through Nov. 30 could determine whether last year’s profits, and the case for rate cuts, hold up.