The History of Texas Mutual Insurance Company

In the late 1980s and early 1990s, workers' compensation rates were skyrocketing, and few insurance companies were willing to provide coverage for Texas employers. In 1991, the Texas Legislature created Texas Mutual Insurance Company (then called the Texas Workers' Compensation Insurance Fund) to ensure the availability and affordability of workers' compensation coverage. In 1992, the Fund began underwriting workers' compensation insurance, and in 1994, it became the state's insurer of last resort for businesses that were unable to find coverage elsewhere.

On June 15, 2001, Governor Rick Perry signed House Bill 3458 into law, changing the company's name to Texas Mutual Insurance Company and authorizing the company to operate as a domestic mutual insurance company. The bill maintained statutory mandates that the company remain a competitive force in the marketplace, guarantee the availability of workers' compensation insurance in Texas, and act as insurer of last resort.

The company is governed by a nine-member board of directors. Four board members are elected by the policyholders, and the remaining five board members, including the chair, are appointed by the governor and confirmed by the Senate. The board is responsible for setting rates and directing the company's business. The company's senior leadership manages its internal operations.