April 18, 2025

TDI approves loss cost decrease, class code updates and more

We’re sharing three updates from the Texas Department of Insurance (TDI), including workers’ compensation rate reductions for the majority of classes, the most recent insurance company market conditions report and changes to several class codes. Keep reading to learn more.

Texas workers’ comp loss cost change

TDI has approved the National Council on Compensation Insurance’s (NCCI) recommended loss cost filing for Texas policies effective on or after July 1, 2025. According to the filing, the statewide average loss cost is expected to decrease by 11.5%. Actual premium for individual employers will differ based on their assigned classifications and other factors.

This means many new and renewal policies with Texas Mutual could see rate decreases. As an agent, you can see these lower rates in our system by submitting your quote online. If you have a non-subscriber or business that has not recently considered workers’ comp coverage with Texas Mutual, we encourage you to apply for a competitive quote from us.

Updates to NCCI’s classifications manual

TDI has also approved a filing to amend NCCI's Basic Manual for Texas Classifications and Table of Classifications by Hazard Group. The updates are applicable to policies effective on or after July 1, 2025. The revision creates greater alignment with NCCI's multistate classifications overall. You may notice some changes in upcoming policies:

• Most Texas classification phraseologies will adopt NCCI's muti-state phraseologies.
• Some classifications will be reassigned to different class codes and their associated loss costs.
• Some phraseologies will adopt the NCCI's multi-state phraseologies without changing their class codes.
• The approval also clarifies rules concerning the United States Longshore & Harbor Workers' Compensation Act related to Admiralty law classification rates.

See TDI’s filing (PDF 942KB) to learn more about the 29 class codes and multiple classifications that have been updated.

Market conditions report

TDI recently released its 2024 report (PDF 1980KB) on market conditions in Texas. We’re proud to announce that Texas Mutual remains a stable source of workers’ compensation as well as the top provider in the state with 40.5% of the market. It’s thanks to our hard-working agent partners, like you, that we’re able to deliver on our mission and lead the market in providing a competitive product.

As your workers’ compensation partner, we’re committed to keeping you up to date on the latest industry, regulatory and safety news to help you serve your clients and support your agency’s success. If you have any questions about these topics, please reach out to your Texas Mutual territory manager or underwriter.