Preliminary data indicates Texas home insurers earned a 22% profit on premiums collected last year, according to the Houston Chronicle. It was the best year insurers have had in two decades and follows several years of double-digit rate increases and flat or slightly negative returns for insurers due to increased natural disasters.
Insurance rates increased statewide by an average of 4.3% last year, according to the Texas Department of Insurance, which was significantly lower than the rate increases of preceding years. Homeowners were still paying about 80% more for home insurance in 2025 than they paid in 2020.
Texas Department of Insurance Commissioner Amanda Crawford said given the profits Texas insurers reaped last year, they should “strongly consider whether or not a rate decrease might be in order.” However, insurers can change their rates without getting state approval.
