Texas remains a unique and vital market in the U.S. for workers’ compensation, marked by its opt-out system and dynamic regulatory environment. Here’s an up-to-date, data-driven snapshot to help you advise clients and stay ahead in 2025.
What You Need to Know About Fatal Occupational Injuries
Fatalities by Demographics (2024):
- Majority: Men ages 25–64
- Industries: Construction, energy, logistics
- Contributing Factors: Rapid growth, contractor use, deficient safety programs
Nonfatal Workplace Injuries & Illnesses
Texas’s incidence rate for nonfatal occupational injuries declined to an all-time low of 1.9 per 100 full-time workers in 2024, the lowest since 2012. Key statistics:
- Recordable Cases (2024): Notable year-over-year decline, signaling improved compliance and risk management efforts.
- Most Affected Sectors: Agriculture, construction, manufacturing, and transportation.
Premiums, Loss Costs & Insurance Market Trends
Loss Cost Decrease: In July 2025, Texas adopted a statewide average loss cost reduction of 11.5%, reflecting widespread improvement in claims experience.
- Premium Rates: Net written premium statewide dropped by nearly 3% in 2024, and many employers now see further rate reductions on renewal quotes.
- Combined Ratio: The calendar year 2024 combined ratio was 86%, indicating a highly profitable market for insurers.
- Increased Medical Fee Guideline: As of January 2025, non-network medical reimbursements increased by 3.5%. For professional services, this equals 217% of Medicare rates; for facility-based surgeries, 272% of Medicare rates.
Return-to-Work & Health Care Networks
Return-to-Work Rates: Remain high, with over 83% of injured workers returning within six months of injury, a strong indicator of the system’s effectiveness.
Network Utilization: 26 certified health care networks now operate in Texas, covering all 254 counties, and network care accounts for about half of all claims, driving improved outcomes and lower costs
Regulatory & Legislative Changes
- Loss Cost Filing: TDI approved significant class code and phraseology updates for policies effective July 1, 2025, aligning Texas more closely with national NCCI standards.
- Research Agenda: Studies in 2025 are focused on cost/utilization trends, designated doctor scheduling, and updates to impairment guidelines
Texas is One of the Most Important Workers Comp Markets in the U.S.
Texas’s fatality rate remains the highest in the U.S., especially in construction and logistics.
Premium and loss costs keep trending downward due to improved safety and system efficiencies.
The opt-out system persists, but compliance enforcement and payroll/reporting standards are increasingly scrutinized.
Maximum benefit levels and medical reimbursement rates increased for 2025, with network participation highly encouraged for optimal outcomes.
Stay engaged with ongoing regulatory updates and network performance trends to best serve your Texas clients in this complex and rapidly-evolving market landscape.
Data reflects state and national agency releases through July 2025.
