SB 495 - No ESG in Department of Insurance

Senate Bill 495 prohibits the Texas Department of Insurance from adopting or enforcing rules based on Environmental, Social, and Governance (ESG) ratings unless explicitly authorized by statute. It aims to prevent external ESG models from influencing insurance regulations in Texas, ensuring oversight remains within the state’s control. The bill can help ensure that insurance regulations in Texas are based on financial risk rather than politically driven ESG criteria, preventing unnecessary regulatory burdens that could increase costs, promotes free-market principles, and protects Texans from potentially higher premiums. For these reasons, TFR supports SB 495.