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Texas Insurance Market

Texas Wide Open for Business

The Texas MarketPolicy FormsFile-and-UsePublic AdjustersConsumer ChoiceWorkers' CompensationMedical Malpractice ReformHelpful NumbersContacts

With a population of more than 25 million - second largest in the nation - Texas offers a ready marketplace. But size isn't all we have to offer. Innovative, reform-driven leadership and a dynamic, competitive business climate make the Lone Star State an ideal place for insurers to expand or locate. From the far reaches of West Texas and the High Plains, to the Piney Woods of East Texas, and from the Hill Country to the Rio Grande Valley, Texas is home to leading companies in high technology, telecommunications, bio-pharmaceuticals, and manufacturing.

The Texas Market

Texas takes a reasonable, modern approach to regulation. Customer service surveys have found that insurers give Texas favorable marks in creating a regulatory environment that makes the insurance industry want to do business in the state, regulates the industry fairly and effectively, and supports an efficient industry. The surveys also show that insurer perceptions of the Texas regulatory environment have improved. Regulators and the industry alike believe the Texas insurance market is strong and getting stronger thanks to recent insurance legislation, especially in the following areas:

Policy Forms

Insurers are allowed to offer forms to meet consumer demands that differ from state prescribed policy forms. This change allows coverage selections to be controlled by the consumer.


One of the biggest changes in the Texas insurance market is the adoption of the file-and-use system for automobile and homeowners insurance rates. Effective December 1, 2004, companies file their rates with the Texas Department of Insurance, but do not have to wait for prior approval to implement them.

Public Insurance Adjusters

Public insurance adjusters in Texas are now licensed and regulated by the Texas Department of Insurance. This provides for control over third-party adjusters that can impact cost of claims.

Consumer Choice

Health insurance companies and health maintenance organizations now may offer health plans that don't have to include state-mandated benefits. This allows companies to tailor their plans to their customers and allows consumers greater choice. Savings through the mandate-free plans should expand the Texas health insurance market and allow more small employers to offer coverage to their employees.

Workers' Compensation

Texas has long been a leader in workers' compensation reform.

Medical Malpractice Reform

Texans passed an amendment to the state's Constitution that allows the Texas Legislature to limit the amount of non-economic damages that plaintiffs can recover in court. The Texas Legislature has placed limits on amounts of non-economic damages in medical malpractice cases. These limits are intended to drive down unreasonably high damage awards and bring stability to the medical malpractice market, while allowing the truly injured to recover.

Telephone Numbers Helpful to Businesses
Area / E-mail Listing Telephone Number
Texas Department of Insurance Switchboard-Austin 512-676-6000
Texas Department of Insurance Main Toll Free Number 1-800-578-4677 512-676-6710 1-800-252-3439 512-676-6888 512-676-6710 512-676-6605 1-800-248-6032 512-676-6325 512-676-6630 512-676-6800 512-676-6475 512-676-6682

If you would like to discuss these and other good reasons to do business in Texas, send mail inquiries to: Texas Department of Insurance, Business Development, P.O. Box 149104, MC 113-1C, Austin, TX 78714-9104.

For more information, contact:

Last updated: 4/3/2018