The Texas Insurance Code, Article 5.101 Section 3(o)(1) prohibits the use in rate calculations of certain administrative expenses that exceed 110% of the industry median. The following information is published for use by all companies writing Residential Property, Private Passenger Automobile, or Commercial Automobile Insurance subject to Article 5.101. The information concerning the industry median should be reflected in any rate indications utilizing 1998 or 1999 expense data.
110% of Industry Median| Line | 1998 | 1999 | ||
| Fire | 7.8 | 7.7 | ||
| Allied Lines | 6.3 | 6.7 | ||
| Homeowners | 5.6 | 5.7 | ||
| Private Passenger Automobile | ||||
| Liability | 5.9 | 4.8 | ||
| Physical Damage | 4.4 | 4.1 | ||
| Commercial Automobile | ||||
| Liability | 6.8 | 6.6 | ||
| Physical Damage | 6.7 | 7.1 |
Note: Each line of insurance that a company writes in Texas is counted separately in determining the median.
Questions regarding this bulletin should be directed to Tammy Rowland, Property and Casualty Actuarial Section, 512-475-3021.
Sincerely,
Philip O. Presley
Chief Actuary
Property & Casualty