Texas Workers’ Compensation System Reports $12 Million Loss in 2024
The Texas workers’ compensation system recorded a $12 million loss in 2024, driven by an increase in direct losses paid by insurers, according to the latest Texas Workers’ Compensation Market Report from the Insurance Council of Texas (ICT).
Employer Coverage Reaches New High
The report noted that employer participation in the state’s workers’ compensation program reached its highest level since 2016, with 87% of Texas employees now covered. A total of 98 insurers representing 335 companies reported voluntary direct premiums written in 2024 — a 10% increase in participating companies compared to 2023.
Premium Trends and Market Leaders
Despite more insurers entering the market, direct written premiums declined 4% in 2024 to $2.6 billion, keeping Texas ranked fifth nationally for workers’ compensation premiums behind California, New York, Florida, and New Jersey.
Texas Mutual Insurance Company continued to dominate the market with approximately $1 billion in premiums written, representing a 39.4% share. Zurich followed with $148 million, while Travelers and Hartford Fire & Casualty reported $140 million and $134 million, respectively.
Rising Losses and Fraud Reports
Direct losses climbed 8.7% in 2024, increasing from $1.03 billion to $1.12 billion. This follows a 14.3% rise in losses from 2022 to 2023, highlighting ongoing cost pressures for insurers.
The ICT also reported a rise in fraud activity, with 1,536 fraud reports received in 2024 compared to 1,451 the previous year. Of these, 53 cases were opened for investigation, four were referred for prosecution, and three resulted in convictions.
Overall, the data suggests a competitive but increasingly costly environment for Texas workers’ compensation insurers, even as employer participation and market engagement continue to expand.
