The below letter to the editor was published on September 2, 2010 in the Statesman, in response to an article about Democratic gubernatorial candidate Bill White saying he wants greater insurance regulation for Texas homeowners:
Regulation is not the answer
Re: Aug. 28 article “White’s plan on insurance raises doubts.”
Democratic gubernatorial candidate Bill White is wrong to push for re-establishment of a prior approval system of insurance regulation.
Texas made the right decision when it embraced the less burdensome, more flexible prior approval system in 2003. Although it hasn’t been implemented in full, the system promotes competition and lower rates for the Texas market.
The right solution for Texas is increased competition through less regulation, not additional regulation built on the backs of taxpayers. Blaming insurers for high rates is a political maneuver that ignores the realities of the insurance industry. Insurers need to be able to react to risk and charge premiums that allow them to remain solvent.