PACT Applauds Governor Abbott’s Crackdown on Insurance Fraud
New task force will target fraud and examine excessive and inflated claims costs in Texas
Washington, D.C. – Protecting American Consumers Together (PACT), a national organization dedicated to standing up for plaintiffs, victims, and consumers and ensuring access to a fair and transparent legal system, today applauded Governor Greg Abbott’s action to crack down on insurance fraud in Texas, including his directive to create a new Insurance Fraud Task Force and examine the impact of excessive, unnecessary, and inflated claims costs.
As part of a series of directives issued to the Texas Department of Insurance (TDI), Governor Abbott ordered the agency to establish an Insurance Fraud Task Force focused on combating fraudulent activity that ultimately harms Texas consumers.
The Governor also directed TDI to study excessive, unnecessary, and inflated claims costs in Texas’ commercial auto, personal auto, and homeowners markets and identify additional actions the state can take to protect consumers.
“Fraud is not a victimless crime, and Governor Abbott is right to make cracking down on it a priority,” said Lauren Zelt, Executive Director of Protecting American Consumers Together. “When bad actors manipulate claims, manufacture damages, or otherwise exploit systems designed to compensate legitimate victims, honest Texans ultimately pay the price.”
Fraudulent schemes can take many forms, from staged automobile crashes and manufactured injuries to inflated claims and other coordinated efforts designed to generate illegitimate payouts. These practices do more than generate fraudulent claims. They can endanger innocent people, exploit the civil justice system, divert resources from legitimate victims, and drive up costs for consumers and businesses.
PACT has advocated across the country for stronger efforts to identify and combat organized fraud and other abuses of the civil justice system, including schemes involving staged automobile accidents.
“Creating this task force gives Texas an opportunity to take a comprehensive look at where fraud is occurring, who is profiting from it, and what additional tools are needed to stop it,” Zelt continued. “The overwhelming majority of Texans play by the rules. They should not be forced to shoulder the costs created by those who deliberately exploit the system for financial gain.”
Governor Abbott also directed TDI to identify additional administrative actions and potential statutory changes needed to protect Texas consumers. The agency’s recommendations are due to the Governor’s Office by September 14, 2026.
PACT looks forward to reviewing the task force’s work and supporting commonsense reforms that protect legitimate victims, hold bad actors accountable, and ensure Texas’ civil justice system cannot be used as a vehicle for fraud.
About Protecting American Consumers Together (PACT):
Protecting American Consumers Together (PACT) is a national consumer advocacy organization dedicated to exposing lawsuit abuse, promoting transparency, and advancing commonsense legal reforms that protect consumers, lower costs, and strengthen America’s civil justice system.