Insurance Rates May Drop

8-25-04 - AUSTIN, Texas (AP) More homeowner’s insurance rate reductions may be in store for Texas policy holders. State insurance consumer advocate Rod Bordelon has told lawmakers that insurance companies are on track to earn their highest profit since 1999.

The House Insurance Committee was told that the profit could mean more rate reductions for homeowners. Bordelon says companies paid out an average 34% of premiums they collected during the first two quarters of this year. He says any percentage of premiums paid for claims below 60 percent is good for insurers.

Bordelon says he believes some companies will voluntarily lower their rates. But according to the Houston Chronicle, he says the state may have to order others to do so.