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Bill

SB 495

Relating to the authority of the Texas Department of Insurance to adopt rules that implement or are based on certain environmental, social, and governance models, ratings, or standards.

89th Legislature (2025) Introduced by Brandon Creighton and 4 co-sponsors

SB 495 prohibits Texas insurance regulators from adopting rules based on environmental, social, and governance models, limiting ESG-driven oversight of the insurance industry.

Committee report sent to Calendars
#civilremedies&liabilities(i0065) #insurance #commissionerof(v0396) #texasdepartmentof(v0006) #insurance--general(i0445)
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Bill Summary · SB 495

Legislative bill overview

SB 495 restricts the Texas Department of Insurance's authority to adopt rules based on environmental, social, and governance (ESG) models, ratings, or standards. The bill prevents the department from using ESG criteria as a basis for insurance regulations, effectively limiting how the agency can incorporate sustainability and social responsibility factors into its oversight of the insurance industry.

Why is this important

This bill addresses a high-stakes debate over whether state financial regulators should consider ESG factors in their decision-making. Supporters argue it prevents ideological criteria from influencing insurance policy, while opponents contend it eliminates tools for managing systemic risks and societal impacts. The outcome affects how Texas regulates a multi-billion-dollar industry and shapes the state's competitive position on financial regulation.

Potential points of contention

  • Definition and scope: The bill's language around what constitutes "ESG-based" rules may be unclear, potentially creating litigation over which regulatory decisions fall under the restriction
  • Risk management limitations: Critics argue blocking ESG considerations prevents insurers from adequately assessing climate risks, cybersecurity threats, and governance weaknesses that affect financial stability
  • Industry competitive impact: Insurance companies operating across multiple states may face conflicting requirements if other states adopt different ESG policies, complicating compliance

Compiled from official sources — confirm details with the bill’s official record.

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