TPCIGA will not have an Assessment for any of the lines of business for calendar year 2025. If you have any questions contact us below.

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How Assessments Are Determined

To maintain adequate funding, the Texas Property and Casualty Insurance Guaranty Association Board of Directors may initiate assessments when additional resources are required for any of the three accounts.

  • Assessments are based on the lines of business written by the impaired insurer.
  • Each insurer is assessed in proportion to its net direct written premium in Texas relative to the total for all insurers for that line of business.
  • The calculation uses data from the insurer's annual statement from the prior year.
  • For Workers’ Compensation:
  • Net direct written premium includes “modified” annual premiums before deductible credits.
  • Reduced by return premiums and dividends paid.

Annual Assessment Limits

Texas Property and Casualty Insurance Guaranty Association applies statutory limits to how much can be assessed in a calendar year:

  • Standard Limit: Up to 2% of an insurer’s net direct written premium from the prior calendar year.
  • In case of Catastrophe:
  • An additional 2% may be assessed (excluding motor vehicles or workers’ compensation lines).
  • Requires approval from the Governor of Texas.

Example: If a company wrote $240,000 in auto premiums in 2021, the max assessment for 2022 would be $4,800 ($240,000 × 0.02).

  • If assessments in a given year are insufficient to cover claims, successive-year assessments may be applied.

Assessment Categories

Assessments are divided into three separate accounts for administrative purposes:

  • Workers’ Compensation Insurance Account
  • Automobile Insurance Account
  • Other Lines Insurance Account

Premium Tax Offset for Insurers

Insurers paying assessments receive a tax credit benefit:

  • 100% of any assessment paid is eligible as a credit against state premium tax.
  • The tax credit is allowed at 10% per year for 10 years, with an optional extension.
  • Unused credits can be recorded as an admitted asset in the insurer’s books.

Transferability of Credits:

Tax credits may be transferred or assigned if:

  • A merger, acquisition, or reinsurance assumption occurs; or
  • The commissioner approves the transfer by order.

Current Premium Amounts (CY 2024)

The following amounts represent the total premiums for each line in Texas, used in determining assessment proportions for 2025:

  • Auto: $42,947,948,872
  • Other Lines: $40,694,748,270
  • Workers’ Compensation: $2,916,768,711

Assessment History

  • Texas Property and Casualty Insurance Guaranty Association issued an assessment in 2016, representing a span of a decade since the last assessment.
  • Auto Line assessment was issued in 2021.
  • Other Lines assessments were issued in 2022 and 2023.

Early Access Distributions

“Early Access” refers to funds released by the receivership estate to Texas Property and Casualty Insurance Guaranty Association during insolvency proceedings.

  • These funds are often distributed before the estate is fully closed, helping reduce the need for assessments.
  • They allow Texas Property and Casualty Insurance Guaranty Association to pay claims earlier and generate investment income.
  • Over half of Texas Property and Casualty Insurance Guaranty Association’s funding has historically come from such early access distributions.

Financial Information - Annual Reports

Recent year-end audited financial statements are available in PDF format