As of November 26, 1996 the Texas Department of Insurance (TDI) is no longer issuing catastrophe bulletins. The bulletins were originally issued in order to identify catastrophic events and provide companies with the associated catastrophe codes (CAT codes) to use for statistical reporting purposes. In the past, TDI gathered its information on catastrophes from Property Claim Services (PCS), a company specializing in catastrophe management.
According to PCS, an event was considered catastrophic when the estimated insured loss to the industry resulting from the event was expected to exceed the threshold of $5 million to all real and personal property insured under fire and allied lines coverages, inland marine fixed property coverages, and comprehensive automobile coverages. TDI ceased the issuing of catastrophe bulletins when PCS raised this threshold from $5 million to $25 million. The P & C Actuarial division at TDI is currently researching other methods of identifying catastrophe losses.
Please note that Commissioner´s Bulletin No. B-0023-97 dated June 2, 1997, is not a catastrophe bulletin. This bulletin was drafted in order to allow companies additional time to process claims resulting from the weather-related events occurring on May 27, 1997, through May 28, 1997, in the counties of Williamson, Travis, Bexar, and Comal.
Questions related to this bulletin should be directed to Jennifer Vaughn at 512-305-8125 or Christi Wooley at 512-475-3016.
Sincerely,
C.H. MAH
ASSOCIATE COMMISSIONER,
TECHNICAL ANALYSIS