Texas Watch Poll 2013: Synopsis of Results

7/28/2019 Texas Watch Poll 2013: Synopsis of Results

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Texas insurance issues Statewide poll

March 21-25, 2013 Commissioned by


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Background

l Methodologyl Statewide sample of 603 active votersl 25% of respondents from cell-phone only householdsl Interviews conducted March 21-25, 2013l Typically 12 minutes in lengthl

Margin of error of 4.0% for 603 casesl Particular care taken to objectively describe legislative & regulatory status quo,fairly represent insurance-industrys positions, and both distribute and rotateorder of questions & arguments, to limit any potential bias in results

l Survey funded and conducted on behalf of Texas Watch (www.texaswatch.org),a non-partisan consumer-advocacy group

l Contributorsl Dr. David B. Hill, Director, Hill Research Consultantsl Dr. Stephen H. White, Assistant Directorl David J. Benzion, Senior Research Analystl Jason Nemeck, Project ManagerLeg. Adv. Paid for by Texas Watch; Alex Winslow, Executive Director; 815 Brazos Street, Suite 603, Austin, Texas 78701

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Key Findingspart 1 of 4

l Climate of OpinionlA 49% plurality of the electorate thinks the Lone Star state is headed

in the right direction

l Nearly 1/3rd of active Texas voters identify with the Tea Partyl Market Perceptions

l Nearly 2/3rds of the electorate is concerned about the high cost ofhome and auto insurance

l By wide margins, voter sentiments reflect a pro-consumer outlooklPerhaps defying the political assumptions of some, these pro-consumer

sentiments earn vigorous agreement even among Republicans and

Tea PartierslTexas generally business-friendly voters also endorse some insurance

industry opinions as wellbut with much less intensity and by moremodest margins than they do pro-consumer sentiments

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l Market Perceptions (cont.)l The electorate has reached a broadly shared and intensely felt

consensus that

lInsurance companies routinely deny or underpay legitimate claims andunnecessarily delay legal proceedings in the hope policyholders will

simply give up before receiving what they are due

lThe court system generally does a better job than state agencies ofholding accountable insurance companies that treat customers unfairly

lPolicyholders should have easier access to the courtsand companiesshould potentially face stiffer fines and penaltieswhen a claim has beenunfairly denied, delayed or underpaid

l Dispute Resolutionl Voters are deeply ambivalent about binding arbitration and wary of too

narrowly restricting policyholders access to the courtssentiments in

evidence across geographic, partisan and ideological lines

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l Dispute Resolution (cont.)l To best balance consumers rights with the need to discourage

frivolous lawsuits

lNearly half want policyholders who think theyve been wronged to have astreamlined, simplified process for seeking redress in court

lThis approach is equally appealing to Moderates, Independents,Liberal Democrats and Tea Partiers alike

lAlmost 1/3rd are relatively satisfied with the status quo, and want theirrepresentatives in Austin to focus on other, more important issues

lOnly 15% feel that even further shielding insurance companies frompotential lawsuits should be a top legislative priorityjust 8% strongly

l On the surface, tort reform enjoys some public support as a generictermbut when asked to ultimately choose among distinct public

policy proposals, voters overwhelmingly oppose additional restrictions

on policyholders legal rights

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l Political Accountabilityl By decisive margins, Texas voters will reward legislators who

safeguard the right of policyholders to hire an attorney and seek

redress in court

lThis is as true across all partisan and ideological linesamongRepublicans, Independents and Democrats, and from Austin liberals to

suburban Tea Partiers

l Regardless of how the issue is framedl7 in 10 voters will reward legislators who believe it should either be easier

or at least should not be harderfor a policyholder who believes their

claim has been handled unfairly to hire an attorney to represent their

interestsl51% hold this position strongly, while just 15% actively embrace the

opposite view that is advanced by the insurance industry and its lobbyists

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Climate of Opinionright direction vs. wrong track, and tea party stance

State of the State Stance on the Tea Party

rightdirection + / -

wrongtrack

memberfriendly

hostileoppose

dontcare

49% + 11 38 All voters 31% 14 46

65% + 11 26 Men 18-50 32% 11 48

48% + 16 32 Women 18-50 26% 12 54

46% + 1 45 Men 51+ 37% 20 39

43% - 3 46 Women 51+ 32% 13 43

57% + 24 33 Republicans 58% 1 34

46% + 4 42 Independents 28% 19 44

43% + 1 42 Democrats 9% 25 60

62% + 30 32 Tea Party

47% + 9 38 Dont Care about TP

34% - 20 54 Hostile/Oppose TP

l Among active voters in Texas

7

nearly1/3rd overall

(and 58% of

Republicans)

identify with

the Tea Partymovement

a 49%plurality

thinks the

state is

headed in

the rightdirection


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Cost of Insuranceprice of home/auto coverage much too high, somewhat too high, about right, or too low?

l Nearly 2/3rds of Texas voters are concerned about the high cost ofhome and auto insurance, with 3 in 10 acutely worried

l 35% are relatively comfortable with current pricesl No one thinks they are getting an excessive bargain for their money

unsure

3%

too low

0%

about

right

35%

somewhat

too high

33%

much

too high

29%

Too High62%

much + some

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Market Conditions Sentimentsagreement vs. disagreement w/pro-consumer statements

Market Conditions: Agree or Disagree?by margin agree/disagree, pro-consumer statements only

strong agree + / - disagree strong

To help consumers make apples-to apples comparisons andgenerate price competition, companies should be requiredto offer option of a standard, full-coverage policy written in

plain language that would be consistent across the industry

74 94% + 90 4 2

With higher premiums, larger deductibles & expandedexclusions, seems like were paying more and more for home &auto insurance these days while getting less and less in return

60 84% + 70 14 4

It is unfair that a company youve paid premiums to for years

can automatically raise your rates or deductibles simply becauseyou make a claim, and state law ought to prohibit the practice 61 80% + 61 19 10

Texas current system of regulation favors powerful insurancecompanies and their lobbyists over consumers and homeowners

39 67% + 47 20 7

widespreadmargins

intenseagreement

9

l Opinions regarding Texas current insurance market reflect apro-consumer outlook that is broadly shared and intensely felt


10/17

Dispute Resolution Sentimentsagreement vs. disagreement w/pro-consumer statements

Dispute Resolution: Agree or Disagree?by margin agree/disagree, pro-consumer statements only


When companies unfairly deny, delay or underpay legitimateclaims, customers should have easier access to the courts and

stronger legal remedies that impose stiff financial penalties61 88% + 79 9 2

Companies routinely drag out lawsuits as long as possiblein the hope people will simply give up before they

are paid what they are owed55 78% + 64 14 6

While no system is perfect, judges and juries in the court systemdo a better job than bureaucrats in state agencies of holdingcompanies accountable when they treat customers unfairly

37 71% + 53 18 5

widespreadmargins

intenseagreement

10

l When asked to reflect on the way in which disputes are resolvedbetween policyholders and insurance companies, pro-consumer

viewpoints continue to resonate deeply, and by dominant margins


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Conservative Agreement w/pro-Consumer Viewsoverall & strong agreement even among Republicans and Tea Partiers

Agree with Pro Consumer Sentimentpercentage overall & stronglyby party & tea party stance GOP IND DEM

memberfriendly

dontcare

hostileoppose

To help consumers make apples-to apples comparisons &

generate price competition, companies should be requiredto offer option of a standard, full-coverage policy written in

plain language that would be consistent across industry

95%74 strong

90%72 strong

96%76 strong

94%74 strong

94%75 strong

96%74 strong

When companies unfairly deny, delay or underpaylegitimate claims, customers should have easier access tocourts & stronger legal remedies , impose stiff $ penalties

86%54 strong

85%55 strong

91%73 strong

85%56 strong

89%65 strong

85%63 strong

It is unfair that a company youve paid premiums to foryears can automatically raise your rates or deductibles

simply because you make a claim; law ought to prohibit

78%

55 strong

83%

63 strong

80%

66 strong

78%

55 strong

78%

60 strong

93%

81 strong

With higher premiums, larger deductibles and expandedexclusions, seems like were paying more & more for home

& auto insurance these days, getting less & less in return

80%54 strong

85%61 strong

89%68 strong

82%58 strong

83%62 strong

92%68 strong

Insurance companies routinely drag out lawsuitsas long as possible in the hope that people will simply

give up before they are paid what they are owed

73%45 strong

79%52 strong

83%68 strong

72%46 strong

81%59 strong

86%70 strong

l Perhaps defying the political assumptions of some, consumer-rightsstatements generate widespread and deep enthusiasm even

among Republicans and Tea Partiers

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TeaParty

Stance


12/17

Industry Sentimentsreaction to statements representative of insurance industrys positions

Agree or Disagree?

by margin agree/disagree, industry statements only strong agree + / - disagree strong

Tort reform encourages competition, gives customersmore choices, and eventually leads to lower premiumsby giving companies flexibility they need

to innovate & respond to free market

33 68% + 47 21 10

Insurance companies large profits some yearsare balanced out by the bad years when they have to

pay-out major claims in response to natural disasters29 68% + 44 24 11

Although public may not appreciate it, companies say

it is difficult to operate at a profit in this economic climate,and legislature needs to take steps to help industry

reduce cost of fraudulent claims and frivolous lawsuits

33 64% + 32 32 17

Current regulations strike a good balance betweenprotecting customers while allowing insurance companiesto make reasonable profits in a highly competitive market

20 56% + 23 33 15

l Texas generally business-friendly voters also endorse someinsurance industry opinions, but with much less intensity and by

more modest margins than they do pro-consumer sentiments

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Less intense and narroweragreement relative to

pro-consumer sentiments


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Ambivalence on Arbitrationreaction to arbitration-related statement reflective of insurance industrys position

l Across geographic, partisan and ideological lines, Texas voters aredeeply ambivalent about binding arbitration, and wary of too

narrowly restricting policyholders access to the courts

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It is in everyones best interest to encourage binding arbitrationby limiting consumers access to the courts

to resolve complaints against insurance companies


All voters 21 48% + 2 46 23

Houston/Gulf Coast 24 45% - 2 47 23

DFW/Metroplex 17 41% - 13 54 27

Austin/S.A. Central Corridor 23 50% + 7 43 21

Republicans 17 50% + 6 44 24

Independents 7 32% - 27 59 28

Democrats 33 53% + 12 41 20

Tea Party Member/Friendly 16 44% - 6 50 28

Hostile/Opposed to TP 29 44% - 10 54 27

Most Likely Voter 21 46% + 2 48 28

Widespreadlack of

consensus

Commonground


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Preferred Approachto regulations governing resolution of disputes between policyholders and insurance companies

Nearly half wantpolicyholders who think

theyve been wrongedto have a streamlined,simplified process for

seeking redress in court

Almost 1/3rd arerelatively satisfied with

the status quo

and want their

representatives in Austinto focus on other,

more important issuesOnly 15% feel that even furthershielding insurance companiesfrom potential lawsuits should

be a legislative priorityjust 8% strongly

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Combined, 76% of allvoters are content to at

least maintain Texas

current and balanced

approach

27%

15%

9%

35%

13%

18%

9%

8%

7%

49%STREAMLINE, SIMPLIFY PROCESS

strongly

somewhat

GOOD BALANCE NOW, FOCUS OTHER

strongly

somewhat

SHIELD FURTHER FROM LAWSUITS

strongly

somewhat

UNSURE

Currently, insurance laws in Texas try to strike a balance between protecting consumersrights while discouraging frivolous complaints. People across Texas have different

opinions about this approach. Which of these points of view comes closest to your own?


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In-Depth: Preferred Approachto regulations governing resolution of disputes between policyholders and insurance companies,

among select geographic, partisan, ideological and voter model categories

streamline& simplify

currentworks + / -

shield& limit

All voters 49% 27 + 61 15

Houston/Gulf Coast 54% 27 + 71 10

DFW/Metroplex 48% 25 + 56 17

Austin/S.A. Central Corridor 49% 29 + 62 16

Republicans 46% 32 + 64 14

Independents 55% 24 + 65 14

Democrats 50% 20 + 51 19

Tea Party Member/Friendly 55% 29 + 75 9

Hostile/Opposed to TP 51% 28 + 65 14

Most Likely Voter 53% 25 + 64 1415

l Regardless of ideology, geography or partisanship, there is noevidence of significant voter desire to further shield insurance

companies from policyholder lawsuits

l If anything there is plurality (and often majority) support forstreamlining and simplifying consumers access to the courts


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Impact on Political Supportmore/less likely to support own legislator if they vote to make it easier/harder for policyholder to hire an attorney

Support for Legislator Who Votes to Make It

EASIER to hire an attorney HARDER to hire an attorney

strong more + / - less strong strong more + / - less strong

55 76% + 66 10 5 All voters 12 21% - 44 65 48

45 68% + 52 16 10 Republicans 14 17% - 50 67 51

55 70% + 65 5 2 Independents 10 24% - 39 63 41

65 89% + 83 6 3 Democrats 14 23% - 42 65 52

43 65% + 49 16 9 Tea Party 16 23% - 41 64 47

58 81% + 75 6 4 Dont Care about TP 11 21% - 42 63 49

63 92% + 85 7 1 Hostile/Oppose TP 13 22% - 39 61 46

l By decisive margins, Texas voters will reward legislators who safeguard theright of policyholders to hire an attorney and seek redress in the courtswhen they believe a legitimate claim has been unfairly denied, delayed orunderpaid by their insurance company

l This is as true for Republicans and Tea Partiers as anyone else, andwhether framed affirmatively or negatively (i.e., easier vs. harder to hire)

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Political Impact Clustersmore/less likely to support own legislator if they vote to make it easier/harder for policyholder to hire an attorney

70%

15%

14%

51%

19%

9%

6%

7%

8%

27%

24%

11%

8%

6%

3%

4%

2%

4%

3%

3%

4%

PRO CONSUMER--Strongly--

more if easierless if harder--Somewhat--more if easierless if harder

INDUSTRY--Strongly--

more if harderless if easier

--Somewhat--more if harder

less if easier

NEITHER--No Impact--

if easierif harder

--Unsure--if easierif harder

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Regardless of how the issue is framed

7 in 10 voters will reward legislators whotake the pro-consumer position that either It should be easier; or It at least should not be harder

... for a policyholder and their attorney to

bring a claim against their insurance

company

51% hold this position strongly Just 15% actively embrace the opposite view

that is advanced by the insurance industry

and its lobbyists

Documents

Texas Watch Poll 2013: Synopsis of Results