Table 1
Insurers Profit from Tort Reform: Premiums Increase While Loss Ratios Decrease
| Liability Coverages Only | |||||
1994 |
1995 |
1996 |
1997 |
1998 |
|
| Written Premium ($ millions) | $4,527 |
$4,848 |
$5,037 |
$5,220 |
$4,936 |
| Incurred Loss Ratio | 74.0% |
67.0% |
55.5% |
52.1% |
54.6% |
| Paid Loss Ratio | 67.8% |
64.5% |
58.3% |
56.1% |
59.5% |
| All Private Passenger Coverages | |||||
1994 |
1995 |
1996 |
1997 |
1998 |
|
| Written Premium ($ millions) | $7,265 |
$7,622 |
$7,949 |
$8,293 |
$8,365 |
| Incurred Loss Ratio | 70.9% |
72.3% |
62.9% |
58.7% |
60.8% |
| Paid Loss Ratio | 66.4% |
70.9% |
63.7% |
60.6% |
62.5% |
| Data Source: Page 14 Compilations, published by Texas Department of Insurance. | |||||