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Texas Department of Insurance
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General Expense Information: 110% of Industry Median

Insurance Code 2251.052(a)(5) prohibits the use in rate calculations of "disallowed expenses" as defined in 2251.002(1-a), which include certain administrative expenses that exceed 110% of the industry median.

The 110% of industry median values (caps) published below apply to all companies writing any line of insurance subject to Chapter 2251. These caps are calculated as percents of direct premium written. For any year listed on this page, the expense data underlying rates, rate indications, and all other supporting documentation cannot include certain administrative expenses that exceed the published caps. For any year not listed on this page, using a 110% cap equal to the average of the three published caps is acceptable.

Filers are encouraged to use Exhibit E, which is in the Filings Made Easy (FME) Guide on TDI's website to comply with the filing requirements for historical expense information. The FME Guide provides instructions for completing Exhibit E and reflecting the 110% caps.

It may take up to 18 months from the end of a year for TDI to publish that year’s caps.

110 Percent of Industry Median
Line 2020 2021 2022
Residential Fire 7.6 7.0 7.1
Commercial Fire 7.1 6.8 7.0
Residential Allied Lines 7.4 6.6 6.3
Commercial Allied Lines 6.8 6.4 6.5
Private Crop 1.0 1.0 0.8
Farmowners 7.9 7.3 7.6
Homeowners 6.6 6.3 5.7
Commercial Multiple Peril (non-liability portion) 7.5 7.0 6.9
Commercial Multiple Peril (liability portion) 8.2 6.9 6.7
Inland Marine 5.6 5.4 5.9
Medical Malpractice 6.2 7.5 7.3
General Liability 6.5 5.7 6.1
Products Liability 6.8 6.5 6.4
Private Passenger Automobile - No Fault 6.6 7.3 6.3
Private Passenger Automobile - Liability 6.1
Private Passenger Automobile - Physical Damage 6.0 7.1 5.7
Commercial Automobile - No Fault 6.3 5.6 5.2
Commercial Automobile - Liability 5.9
Commercial Automobile - Physical Damage 7.1 6.0 5.8
Fidelity 7.1 6.3 6.8
Surety 7.8 7.8 7.7

 

For more information, contact: PCActuarial@tdi.texas.gov

Last updated: 2/22/2024