TX| The Texas Department of Insurance’s Commissioner’s Bulletin B-0007-26, issued September 2, 2026, warns insurers and their agents that “price optimization”—setting premiums based on a policyholder’s predicted willingness to tolerate an increase or likelihood of shopping rather than on loss risk and legitimate costs—is prohibited in Texas. TDI states that premiums must be actuarially supported and tied to risk-related costs; charging similarly situated policyholders different increases based on loyalty or demand elasticity is unfairly discriminatory. Insurers must fully disclose their cost-based rating considerations in rate filings, and TDI indicates that noncompliance may result in enforcement action.
- Price optimization cannot be used in ratemaking, pricing, or rating plans in Texas.
- Rates must be risk- and cost-based, and cannot be excessive, inadequate, unreasonable, confiscatory, or unfairly discriminatory.