Regan Ellmer, director of government affairs at the Independent Insurance Agents of Texas (IIAT), highlighted concerns over “lawsuit abuse” and its impact on rising insurance costs. He pointed to potential reforms such as third-party litigation funding rules and the establishment of the Lone Star Economic Alliance.
“If you know me, you’ve heard me emphasize the significance of lawsuit abuse and tort reform as one of the few areas the legislature can influence to reduce insurance costs for our clients,” said Ellmer. “One potential solution that has been in progress for some time is third-party litigation funding (TLPF). Another possible fix is a new effort spearheaded by the Texas Trucking Association (TTA) and Texans for Lawsuit Reform (TLR) called the Lone Star Economic Alliance (LSEA). There are now more than 350.”
Texas has been embroiled in a debate over “lawsuit abuse,” with business groups cautioning that litigation inflates insurance costs, while trial lawyers argue that reforms could limit accountability. According to the Texas Tribune, lawmakers in 2025 considered proposals like SB 30 aimed at curbing “nuclear verdicts,” although significant measures faced obstacles in the legislature. Proponents of reform assert that unchecked lawsuits drive up expenses for consumers, small businesses, and insurers statewide.
Litigation has notably affected insurance costs for Texas businesses and rideshare drivers. Texans for Lawsuit Reform reported a 118 percent increase in commercial vehicle lawsuits since 2008, which has raised costs for small businesses dependent on fleets. Insurify data indicates that Texas drivers who add rideshare coverage encounter premiums approximately $14 to $168 higher per month, highlighting financial pressures from legal and claims environments.
The Lone Star Economic Alliance was established in 2025 to advocate for lawsuit reform and rapidly grew to include over 1,100 member businesses across Texas. This swift expansion reflects frustration with escalating legal costs, contrasting with older coalitions like the Texas Association of Business, which developed membership more gradually. The Alliance’s growth signals momentum behind targeted tort reform efforts.
Ellmer serves as Director of Government Affairs at IIAT, where he leads legislative advocacy for independent insurance agencies. According to IIAT, he joined the association in 2021 after a six-year tenure at the Texas Capitol, including serving as chief of staff to Representative Andrew Murr. He later worked at the Texas Department of Insurance and focuses his career on advancing insurance policy reforms.
The Independent Insurance Agents of Texas is the largest association of its kind in the state, representing nearly 1,500 independent agencies and tens of thousands of employees. According to IIAT, its mission is to enhance the influence of independent agents through advocacy, professional education, and resources. The group actively supports legislation affecting insurance markets and tort reform to safeguard its members and their clients.
