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Actuarial Corner - Reports & Rate Guides


  • Senate Bill 1 - Rider 19 Review of Insurance Industry Practices Regarding Data Mining and Pattern Recognition Practices and Technologies (December 2010) - Senate Bill 1 of the 81st Legislative Session (2009) required the Department to conduct a review of insurance industry practices regarding the use of data mining and pattern recognition practices and technologies that are used to predict differences in expected losses for personal automobile or residential property insurance coverage or health benefit plan coverage; and the manner in which insurers use these technologies in underwriting and setting rates. This report begins on page 57 of the Biennial Report of the Texas Department of Insurance to the 82nd Legislature.
  • Setting the Standard: An Analysis of the Impact of the 2005 Legislative Reforms on the Texas Workers' Compensation System, 2010 results (December 2010) - Section 2053.012, Texas Insurance Code and Section 405.0025, Texas Labor Code require the Texas Department of Insurance (Department) to issue biennial reports to the Texas Legislature no later than December 1st every even-numbered year on the impact of the 2005 House Bill (HB) 7 reforms on the affordability and availability of workers' compensation insurance for Texas employers and the impact of certified workers' compensation health care networks on return-to-work outcomes, medical costs, quality of care issues and medical dispute resolution.
  • The Effects of the 2005 Legislative Reforms on the Affordability and Availability of Workers' Compensation Insurance for Texas Employers (December 2006) - In 2005, the 79th Legislature passed House Bill 7 (HB 7) which represents the most comprehensive organizational and policy reforms to the Texas workers' compensation system since 1989. One aspect of the bill required the Texas Department of Insurance (Department) to evaluate the impact of the reforms on the affordability and availability of workers' compensation insurance for Texas employers on a biennial basis and to report the results to the Governor and the Legislature no later than December 1 of each even-numbered year.
  • Supplemental Report on Credit Scoring (January 2005) - A supplemental study on Credit scoring was completed in 2005. The second phase of the study evaluated if, and to what extent, credit scoring enabled an insurer to more accurately predict losses when used in conjunction with other variables. Overall, the second phase indicates that credit scoring significantly improves pricing accuracy when combined with other rating variables in predicting risk.
  • TDI Credit Scoring Study (December 2004) - In 2004, the Texas Department of Insurance (TDI) conducted a legislatively mandated study on the use of credit scoring. The study is significant, in that it analyzed policyholder data at the individual level to determine whether credit scores are an effective predictor of risk, and to examine the impact of its use on different classes of consumers.
    • Findings indicated a strong relationship between credit scores and claims experience. Poor credit scores are associated with increased claims activity. Furthermore, the study found that Black, Hispanic, young, and low-to-moderate income policyholders tend to have worse credit scores than White, Asian, older, and high income policyholders.
    • TDI's study is groundbreaking in the quantity and quality of data analysis undertaken to better understand the practice of credit scoring. The study was mandated by the Texas Legislature in 2003, at the same time that an array of consumer protection measures were enacted to regulate its use.
  • SB 310 Reports (March 2003) - To address the concerns of the legislature this report contains a review of the rates, a determination of whether the rates are reasonable, and information pertaining to other items listed SB 310. Emphasis was placed on reviewing company rate levels and whether or not they were reasonable.

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Last updated: 9/21/2020