Texas ranks fifth in the U.S. for Direct Written Premiums (DWPs). In 2022, total DWP in the U.S. was $56.6 billion; with Texas at 4.5% of the U.S. market.
Total DWP in 2022
91 groups (302 companies) had DWPs for workers’ compensation in Texas in 2022, compared to 100 groups (317 companies) in 2021. Direct losses for 2022 were over $904 billion.
Top 10 Workers’ Compensation Groups
(Voluntary market) by premiums written
Workers' Compensation Losses (2018-2022)
Note the decrease in 2020 due to the impacts of COVID-19 pandemic.
Key Takeaways
- Out of the top five workers’ compensation groups in Texas, only one did not have a net underwriting loss (Liberty Mutual Group).
- The top 10 groups in Texas wrote about 74.49% of the market.
- Since 2003, workers’ compensation insurance rates have dropped nearly 77%.
- Insurance companies writing in Texas averaged a 10% return on net worth (net income after taxes to net worth) over the last decade, outperforming the national average of 8.8%.
- One important measure of market health is the size of the residual market (policies written by the insurer of last resort). In 2021, the residual market represented only about 0.49% of the Texas workers’ compensation insurance market. The residual market has been consistently less than 1% of the market for over 20 years.
- Workers’ compensation is among the best performing lines of insurance when looking at combined ratios by line between 2019-2023.
