Workers Compensation Insurance

We are now authorized to quote and bind Workers Compensation Insurance on behalf of Texas Mutual. In addition to Workers Compensation, HB 3752 authorizes Texas Mutual to establish and market a very different group medical program for employer groups of <250 employee lives.

Workers Compensation insurance is Reference Based Pricing although few are aware of that. Managing employer sponsored health & welfare plans and Workers Compensation through data sharing makes sense.

A brief history of Texas Mutual

Texas Mutual Insurance is the largest workers’ compensation insurance carrier in the state with almost three times the market share as the next largest provider. This carrier is the state insurance fund but operates as a private carrier in the market.

Texas Mutual was born in response to skyrocketing workers’ comp rates and poor market capacity in the late 1980s and early 1990s. The Texas Legislature created the mutual insurer in 1991. It was originally called the Texas Workers’ Compensation Insurance Fund and it was created to ensure the availability of affordable workers’ comp insurance in the state.

The Fund began underwriting workers’ comp insurance in 1992, and, within two years, it was already the state’s largest insurer of last resort for companies that struggled or were unable to find coverage elsewhere.

The insurer’s name changed to Texas Mutual Insurance Company on June 15, 2001, when governor Rick Perry signed House Bill 3458 into law. The Bill enabled Texas Mutual to operate as a domestic mutual insurance company. It also maintained statutory mandates stating Texas Mutual had to remain competitive, guarantee the availability of workers’ comp insurance, and be an insurer of last resort for hard-to-place risks.

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