Public Announcements

DFW RIMS External Affairs Committee | May Update
Tracking Policy, Courts & Advocacy Shaping the Risk Landscape

The External Affairs Committee continues to track legislative discussions in the run-up to the 90th legislative session. As more information is received, we will continue to report to members on any new headlines. Here is a recap of what is going on in the political environment down in Austin.

🏛️ TDI Leadership Update

Andrew Norton has been appointed as Captive Insurance Specialist at TDI, providing regulatory oversight to a growing captive sector that has now surpassed 100 captive formations, a milestone for the state.

His 15 years of insurance experience in areas including operations, Insurtech, and business improvements provide him with the background to understand the intersection of insurance structures and real-world conditions. His main goal will be to bring transparency and predictability, helping spur future captive formation growth in the state. It will be exciting to see how his leadership helps Texas continue to climb up the charts of US captive domiciles.

🏛️ Workers’ Compensation Loss Cost Update

TDI issued Commissioner’s Bulletin #B-0001 -26 in mid-April, bringing relief to insurance buyers through loss cost decreases effective June 1st of this year. The Department of Insurance accepted a filing from the NCCI proposing an overall average decrease of 3.8% in loss costs.

Carriers writing Workers' Compensation in the state will be required to submit new rate filings for all policies effective on or after July 1st.

🏛️ Legislative Priorities: Affordability & Fraud Prevention

In Texans for Legal Reform's (TLR) weekly brief (published April 8, 2026) the lobbying group outlined that affordability and fraud prevention are common themes among most legislative committees. Politicians are taking a close look at affordability issues impacting individuals, families, and businesses.

The House Insurance Committee is researching drivers of increasing insurance premiums, which will undoubtedly include the subject of lawsuit abuse. Other committees, such as the House Committee on Homeland Security, Public Safety, and Veterans' Affairs, are reviewing the influence of foreign investments by adversaries (e.g., Russia, China), including their participation in litigation funding to bypass sanctions and transforming courtrooms from a source of justice to a source of profit. A profit that erodes economic performance at the state level and adds to the affordability issues in the insurance market.

As these discussions and studies continue to develop the External Affairs Committee will provide updates as we gear up for the 90th legislative session in 2027.

🏛️ Recent Texas Supreme Court Decisions

The Texas Supreme Court (SCOTX) has issued rulings in early 2026 that redefine contractual risk transfer and policy interpretation:

Bell Helicopter Services Inc. v. Hon. John Grady

The Texas Supreme Court’s Ruling in Bell Helicopter Services Inc. & Bell Helicopter Textron Inc. (Relators) v. The Honorable John Grady (Respondent) clarifies that routine revisions to a flight manual do not constitute a "new part" that restarts the 18-year statute of repose under the General Aviation Revitalization Act (GARA). By preventing these documentation updates from triggering fresh liability for decades-old aircraft, the court reinforced a definitive "cutoff" for manufacturer exposure. For the insurance industry, this decision provides critical actuarial certainty and prevents the "long-tail" liability of legacy fleets from becoming an infinite, unpriceable risk.

In re NetSpend Corp.

The Texas Supreme Court’s decision in In re NetSpend Corp. (2021) reinforces the Apex Doctrine, which shields high-level executives from depositions unless the seeking party proves the executive has "unique or superior personal knowledge" of the facts. The Court ruled that general corporate oversight or signing off on high-level strategy is insufficient to compel a CEO’s testimony, especially when lower-level employees with direct involvement have not been deposed first. This ruling has a positive impact on D&O insurance by providing an economic "moat" around senior leaders, adding protection against high costs of executive-level litigation and leveraging higher-ups to push for claim settlements even at inflated costs.

🏛️ Recent “Nuclear Verdicts” in Texas

Texas continues to see a rise in "thermonuclear" verdicts—awards exceeding $100 million—which significantly impacts the commercial liability and excess insurance markets. Below are three jury awards passed down in April.

$1.6 billion Workplace Explosion Verdict (Starr County)

On April 20, 2026, a jury returned a staggering $1 .6 billion verdict against the owner of a hazardous-chemicals facility. The case involved a 2023 explosion in Pecos that killed two workers. The trial revealed "systemic failures of safety," including the company president's admission that he had never read federal safety standards. This is currently one of the largest workplace wrongful death verdicts in U.S. history.

$1.1 billion Child Abuse Negligence Award (Dallas/Fort Worth)

On March 25, 2026, a Texas family was awarded $1.1 billion after their child suffered a traumatic brain injury while in the care of a stepfather. The jury’s massive award was driven by the catastrophic medical needs of the child, who now requires constant care and assistance breathing.

$175 million Trade Secret Theft (South Texas)

On March 31, 2026, a jury awarded $175 million in an intellectual property case. The award highlighted the growing trend of juries using large punitive figures to deter corporate espionage and the unauthorized use of proprietary technology in the energy sector.

Interested in getting involved?

The External Affairs Committee welcomes insurance professionals and attorneys who want to stay engaged in legislative, regulatory, and legal developments impacting the industry. Join us as we continue to monitor key issues and help shape meaningful dialogue across Texas.

Cory Mangum  
DFW RIMS External Affairs Committee Chair
[email protected]