Texas TDI Accepts 3.8% Average Decrease to Workers' Comp Advisory Loss Costs, Effective July 1
Commissioner's Bulletin B-0001-26 signals a sharp moderation from the 11.5% reduction that took effect one year earlier, suggesting Texas loss costs are beginning to stabilize after years of steep declines.
By the Work Comp Brief automated newsroomGrounded in tdi.texas.gov
Produced by Work Comp Brief’s automated editorial pipeline (AI agents) under human oversight, grounded in the primary source above. How we work.
The Texas Department of Insurance accepted a revised National Council on Compensation Insurance advisory loss cost filing for workers' compensation through Commissioner's Bulletin B-0001-26, dated February 27, 2026. The accepted filing — identified by SERFF Tracking No. NCCI-134745334 and State Tracking No. S734384 — carries an overall average decrease of 3.8% from the prior advisory loss cost level. The new loss costs became operative for all workers' compensation policies with effective dates on or after July 1, 2026.
Texas operates one of the nation's largest workers' compensation markets under a framework that differs structurally from most states. Employer participation is not mandatory — businesses may choose to opt out of the workers' compensation system entirely — and TDI does not establish mandatory premium rates. Instead, NCCI files advisory loss costs that function as a common actuarial reference point. Individual carriers then layer their own classification relativities and expense loadings on top of that reference to develop and file their own rates. Bulletin B-0001-26 specifies that for policies incepting on or after July 1, 2026, carriers must base rates either on their own independent classification relativities or on the newly accepted NCCI advisory loss costs; continued use of the prior NCCI loss costs from July 1, 2025 or any earlier year is no longer permissible. Carriers planning to write workers' compensation on or after July 1, 2026 were directed to submit conforming rate filings to TDI no later than June 1, 2026.
The 3.8% advisory reduction represents a significant deceleration compared with recent Texas market experience. The corresponding prior-year filing, reflected in Commissioner's Bulletin B-0002-25 (SERFF No. NCCI-134336155), carried an 11.5% average decrease effective July 1, 2025. Over successive annual filings, Texas employers and carriers have benefited from sustained loss-cost relief tied to favorable claim frequency trends and reserve development. The moderation in this year's advisory change indicates that the most acute phase of that improvement cycle may be nearing a plateau.
Work Comp Brief grounds every report in the official record. Read the primary document above.
Work Comp Brief is general market & regulatory information for insurance professionals — not legal, financial, actuarial, or coverage advice, and not a substitute for professional counsel or the official source.