Welcome to your Insurance news round-up for July! This month, we’ve got a mix of news impacting the insurance scene, from positive developments like TWFG’s strong IPO debut to pressing concerns like rising homeowners’ insurance rates and potential impacts from an active hurricane season. We’ll also delve into industry recognition for Texas leaders and recent legal battles over federal regulations.
Let’s jump right in!
Texas Insurance Broker TWFG Soars on Nasdaq Debut
Texas-based insurance broker TWFG saw its shares jump nearly 30% on their first day of trading, closing at $22.10 compared to the IPO price of $17. This strong showing signals investor confidence in the recovering U.S. IPO market after a two-year slump. Read more
Hurricane Beryl’s Impact on Insurers: Limited Damage, Active Season Ahead
Insurers are breathing a sigh of relief as losses from Hurricane Beryl are expected to be “low and readily absorbed,” according to Moody’s Ratings. While the storm caused strong winds and storm surge in Texas, most damage is anticipated to be minor and fall within homeowner deductibles. Estimates suggest insured losses of around $2.7 billion, a manageable amount for the industry.
This limited impact, however, shouldn’t lull the insurance sector into complacency. Forecasters predict an “extremely active” Atlantic hurricane season with potentially 25 named storms, including 6 major hurricanes. Warmer-than-average ocean temperatures are fueling these predictions, raising concerns about significant losses if multiple storms make landfall. The industry will need to closely monitor the season’s development and be prepared for potential future impacts. Read more

Texas Homeowners Insurance Rates Soaring Due to Climate Change and Inflation
Texas homeowners are facing a double whammy of rising insurance rates as climate change and inflation batter insurers. Rates have surged 22% in 2024 alone, double the national average. More severe storms and spiking repair costs are forcing insurers to raise premiums, making coastal properties especially vulnerable. Read more
Austin Insurance Leader Patrick Watkins Wins Top Honor from Texas Agents Association
Austin’s Patrick Watkins, CEO of Watkins Insurance Group, has been awarded the prestigious Drex Foreman Award by the Independent Insurance Agents of Texas (IIAT). The award recognizes Watkins’ significant contributions to the independent agency system and his leadership in the insurance industry. Read more
TWFG Soars Above Range in Strong IPO Market, Raising $187 Million
Insurance broker TWFG priced its initial public offering (IPO) above its initial expectations, raising up to $187 million. The company sold 11 million shares at $17 each, exceeding the marketed range of $14 to $16 per share. This offering reflects the strong U.S. IPO market in 2024, with investors eager for new listings. Read more
Aetna in Texas Faltered on Air Ambulance Billing Under No Surprises Act
The first audit of an insurer under the No Surprises Act finds Aetna in Texas miscalculated air ambulance service payments. The Centers for Medicare & Medicaid Services (CMS) report highlights potential issues for both patients and providers. The audit revealed incorrect qualifying payment amounts and missing required disclosures, which could complicate the arbitration process for out-of-network bills. While Aetna has addressed the errors, these findings raise concerns about widespread compliance under the No Surprises Act. Read more

Federal Judge Blocks Biden Administration’s Medicare Insurer Compensation Policy
A federal judge in Texas has blocked a Biden administration policy that sought to prevent Medicare insurers from compensating agents and brokers for enrolling individuals in specific plans. The policy, intended to curb unethical practices and enhance payment accuracy in the Medicare Advantage program, was halted by U.S. District Judge Reed O’Connor, according to Axios. Read more
That wraps up our July 2024 insurance industry news roundup. As always, staying informed is key to navigating the ever-changing insurance landscape.
Whether you’re a homeowner, business owner, or insurance professional, we hope this update provides valuable insights.
Thank you for reading this month’s round-up. Stay tuned for more updates and insights in the coming months. If you have any questions or need further information, feel free to reach out to a trusted life insurance agency.