FINAL PRESENTATION TO THE TEXAS LEGISLATURE

Supplemental Exhibits

SUPPLEMENTAL EXHIBIT I

MAP OF REGIONS

1|Page
TEXAS DEPARTMENT OF INSURANCE
 FINAL PRESENTATION TO THE TEXAS LEGISLATURE
Supplemental Exhibit I: Map of Regions

2|Page
TEXAS DEPARTMENT OF INSURANCE
 FINAL PRESENTATION TO THE TEXAS LEGISLATURE
Supplemental Exhibit II: Residential Property Windstorm and Hail Litigation Data by Event (Section II)

SUPPLEMENTAL EXHIBIT II

FINAL RESULTS

RESIDENTIAL PROPERTY WINDSTORM AND HAIL

LITIGATION DATA (SECTION II)

BY EVENT

3|Page
TEXAS DEPARTMENT OF INSURANCE
 FINAL PRESENTATION TO THE TEXAS LEGISLATURE
Supplemental Exhibit II: Residential Property Windstorm and Hail Litigation Data by Event (Section II)

Statewide Average Time to Close a Claim (in Days) Statewide Average Time to Close a Claim (in Days)
(Based Only on Sampled Claims Closed as of March 31, 2016) Attorney or PA Involved vs. No Attorney or PA Involved
(Based Only on Sampled Claims Closed as of March 31, 2016)
350 900
306

Avg. Time to Close (in Days)

300 800
Avg. Time to Close (in Days)

700
250
600
198
200 500
400
150 133
117 300
94 100
100 83 81 200
64
100
50
0
0 1 2 3 4 5 6* 7* 8* 9*
1 2 3 4 5 6* 7* 8* 9* Event Number
Event Number Attorney or PA Involved No Attorney or PA Involved All Closed Claims

Note: There are few claims with attorney or PA involvement in our sample for events 1-3 and events 7-9; this can cause a large amount of variability in the averages.

*Data for these events is immature. These averages will change as claims from these events that take more time to be reported and closed are settled by insurers. Data includes claims reported through
March 31, 2016. In some cases, companies included claims reported through the date they submitted the data to TDI. In some cases, claims status is as of the date the company submitted data to TDI.

4|Page
TEXAS DEPARTMENT OF INSURANCE
 FINAL PRESENTATION TO THE TEXAS LEGISLATURE
Supplemental Exhibit II: Residential Property Windstorm and Hail Litigation Data by Event (Section II)

Statewide Average Time to Close a Claim (in Days) Average Loss and ALAE Paid as of Final Close
Events 1-5* Events 1-5*
No Attorney or PA / Attorney or PA / Lawsuits No Attorney or PA / Attorney or PA / Lawsuit
(Based Only on Sampled Claims Closed as of March 31, 2016) (Based Only on Sampled Claims Closed as of March 31, 2016)
900 $60,000
745 750
800 $44,566 $49,969
Average Time to Close (in Days)

Average Loss and Expense Payment

$50,000
700

600 $40,000

500
$30,000
400
$15,435
300 $20,000
153 200 $12,794
200
$10,000
100

0 $-
Known Lawsuits Attorney, Unknown or No No Attorney or PA All Closed Claims Known Lawsuits Attorney, Unknown or No Attorney or PA All Closed Claims
Lawsuit Involved No Lawsuit Involved

Combined for Events 1-5* as of March 31, 2016

Avg. Avg. Avg. Payment through Date Claim First Closed Avg. Payment through Date Claim Last Closed
Number Number
of Days of Days Loss and Loss Loss and Loss
Type of Claim Loss Expense Loss Expense
Until Until Loss Payment Expense Loss Payment Expense
First Final Payment Payment
Payments Payments
Close Close
Known Lawsuits 59 745 $ 6,659 $ 590 $ 7,249 $ 34,882 $ 9,683 $ 44,566
Attorney, Unknown or No Lawsuit 20 750 $ 5,557 $ 130 $ 5,687 $ 43,340 $ 6,629 $ 49,969
No Attorney or PA Involved 32 153 $ 7,585 $ 120 $ 7,705 $ 12,530 $ 264 $ 12,794
All Closed Claims 33 200 $ 7,489 $ 144 $ 7,633 $ 14,528 $ 907 $ 15,435

*Events 6-9 occurred in 2014 and 2015. These events were excluded because the data for these years is immature and does not yet include claims that take longer to settle. Data includes claims reported
through March 31, 2016. In some cases, companies included claims reported through the date they submitted the data to TDI. In some cases, claims status is as of the date the company submitted data to
TDI.
5|Page
TEXAS DEPARTMENT OF INSURANCE
 FINAL PRESENTATION TO THE TEXAS LEGISLATURE
Supplemental Exhibit II: Residential Property Windstorm and Hail Litigation Data by Event (Section II)

Percentage of Claims by Claim Status at First Close Percentage of Claims Closed With No Payment at First Close
All Claims, by Event All Claims, by Event
100% 25%
Percentage of Reported Claims

90%

Percentage of Reported Claims

80% 20%
70%
60%
15%
50% 12%
10% 11%
40% 10%
10% 9% 8% 8%
30%
20% 5% 5%
10% 5%
0%
1 2 3 4 5 6 7 8 9 0%
Event Number 1 2 3 4 5 6 7 8 9
Closed - No Payment Closed With Payment Closed - Unknown Payment Not Closed Event Number

6|Page
TEXAS DEPARTMENT OF INSURANCE
 FINAL PRESENTATION TO THE TEXAS LEGISLATURE
Supplemental Exhibit II: Residential Property Windstorm and Hail Litigation Data by Event (Section II)

Percentage of Claims by Claim Status at First Close Percentage of Claims by Claim Status at First Close
Event 4, Mar. 28 - Apr. 5, 2012, Hidalgo County Event 4, Mar. 28 - Apr. 5, 2012, Hidalgo County
All Claims Claims with Attorney or PA Involvement
0% 0%
10%
20%

18%

18%

61%

72%

Closed - No Payment Closed - Unknown Payment Closed - No Payment Closed - Unknown Payment
Closed With Payment Not Closed Closed With Payment Not Closed

Data for events 1-3 and 7-9 is not shown because each event had fewer than 50 claims involving attorneys, PAs, or lawsuits. Information for all claims for these events is shown on Page 6.
7|Page
TEXAS DEPARTMENT OF INSURANCE
 FINAL PRESENTATION TO THE TEXAS LEGISLATURE
Supplemental Exhibit II: Residential Property Windstorm and Hail Litigation Data by Event (Section II)

Percentage of Claims by Claim Status at First Close Percentage of Claims by Claim Status at First Close
Event 4, Mar. 28 - Apr. 5, 2012, Hidalgo County Event 4, Mar. 28 - Apr. 5, 2012, Hidalgo County
All Claims Claims with Lawsuits
0% 1%
10% 11%

18%

24%

64%

72%

Closed - No Payment Closed - Unknown Payment Closed - No Payment Closed - Unknown Payment
Closed With Payment Not Closed Closed With Payment Not Closed

Data for events 1-3 and 7-9 is not shown because each event had fewer than 50 claims involving attorneys, PAs, or lawsuits. Information for all claims for these events is shown on Page 6.
8|Page
TEXAS DEPARTMENT OF INSURANCE
 FINAL PRESENTATION TO THE TEXAS LEGISLATURE
Supplemental Exhibit II: Residential Property Windstorm and Hail Litigation Data by Event (Section II)

Percentage of Claims by Claim Status at First Close Percentage of Claims by Claim Status at First Close
Event 5, May 27-30, 2013, Amarillo Area Event 5, May 27-30, 2013, Amarillo Area
All Claims Claims with Attorney or PA Involvement
0% 5% 0% 5%

9%
14%

81%

86%

Closed - No Payment Closed - Unknown Payment Closed - No Payment Closed - Unknown Payment
Closed With Payment Not Closed Closed With Payment Not Closed

Data for events 1-3 and 7-9 is not shown because each event had fewer than 50 claims involving attorneys, PAs, or lawsuits. Information for all claims for these events is shown on Page 6.
9|Page
TEXAS DEPARTMENT OF INSURANCE
 FINAL PRESENTATION TO THE TEXAS LEGISLATURE
Supplemental Exhibit II: Residential Property Windstorm and Hail Litigation Data by Event (Section II)

Percentage of Claims by Claim Status at First Close Percentage of Claims by Claim Status at First Close
Event 5, May 27-30, 2013, Amarillo Area Event 5, May 27-30, 2013, Amarillo Area
All Claims Claims with Lawsuits
0% 5% 0% 3%

9% 16%

82%
86%

Closed - No Payment Closed - Unknown Payment Closed - No Payment Closed - Unknown Payment
Closed With Payment Not Closed Closed With Payment Not Closed

Data for events 1-3 and 7-9 is not shown because each event had fewer than 50 claims involving attorneys, PAs, or lawsuits. Information for all claims for these events is shown on Page 6.
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TEXAS DEPARTMENT OF INSURANCE
 FINAL PRESENTATION TO THE TEXAS LEGISLATURE
Supplemental Exhibit II: Residential Property Windstorm and Hail Litigation Data by Event (Section II)

Percentage of Claims by Claim Status at First Close Percentage of Claims by Claim Status at First Close
Event 6, Apr. 2-5, 2014, Collin County Event 6, Apr. 2-5, 2014, Collin County
All Claims Claims with Attorney or PA Involvement
0% 12% 1%

23%

11%

46%

30%
77%

Closed - No Payment Closed - Unknown Payment Closed - No Payment Closed - Unknown Payment
Closed With Payment Not Closed Closed With Payment Not Closed

Note: Event 6 had about 200 claims involving attorneys or PAs and less than 100 claims involving lawsuits. Small numbers of claims can increase the variability of the results. Data for events 1-3 and 7-9
is not shown because each event had fewer than 50 claims involving attorneys, PAs, or lawsuits. Information for all claims for these events is shown on Page 6.

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TEXAS DEPARTMENT OF INSURANCE
 FINAL PRESENTATION TO THE TEXAS LEGISLATURE
Supplemental Exhibit II: Residential Property Windstorm and Hail Litigation Data by Event (Section II)

Percentage of Claims by Claim Status at First Close Percentage of Claims by Claim Status at First Close
Event 6, Apr. 2-5, 2014, Collin County Event 6, Apr. 2-5, 2014, Collin County
All Claims Claims with Lawsuits
0% 12% 2%
12%

11%

42%

44%
77%

Closed - No Payment Closed - Unknown Payment Closed - No Payment Closed - Unknown Payment
Closed With Payment Not Closed Closed With Payment Not Closed

Note: Event 6 had about 200 claims involving attorneys or PAs and less than 100 claims involving lawsuits. Small numbers of claims can increase the variability of the results. Data for events 1-3 and 7-9
is not shown because each event had fewer than 50 claims involving attorneys, PAs, or lawsuits. Information for all claims for these events is shown on Page 6.

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TEXAS DEPARTMENT OF INSURANCE
 Number of Claims Number of Claims

10
15
20
25

0
5
10
15
20
25

0
5
7/23/2010 7/8/2009

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10/23/2010 10/8/2009
1/23/2011 1/8/2010
4/23/2011 4/8/2010
7/8/2010
7/23/2011
10/8/2010
10/23/2011
1/8/2011
1/23/2012 4/8/2011
4/23/2012 7/8/2011
7/23/2012 10/8/2011
1/8/2012
10/23/2012
4/8/2012
1/23/2013
7/8/2012
4/23/2013 10/8/2012
7/23/2013 1/8/2013
10/23/2013 4/8/2013

TEXAS DEPARTMENT OF INSURANCE

1/23/2014 7/8/2013
10/8/2013
4/23/2014
1/8/2014
Event 1 (Jul. 8-9, 2009, North Texas)

7/23/2014 4/8/2014

Event 2 (Jul. 23-24, 2010, Houston Area)

10/23/2014 7/8/2014
1/23/2015 10/8/2014
Number of Claims by Day of Attorney Involvement*

Number of Claims by Day of Attorney Involvement* 1/8/2015

4/23/2015
4/8/2015
7/23/2015
7/8/2015
10/23/2015 10/8/2015
1/23/2016 1/8/2016
4/23/2016 4/8/2016

Number of Claims Number of Claims

10
15
20
25

0
5
10
15
20
25

0
5

7/23/2010 7/8/2009
10/23/2010 10/8/2009
1/23/2011 1/8/2010
4/8/2010

*Date of attorney involvement is the earliest of: (i) date of letter of representation or demand letter; and (ii) date of lawsuit.
4/23/2011
7/8/2010
7/23/2011
10/8/2010
10/23/2011 1/8/2011
1/23/2012 4/8/2011
FINAL PRESENTATION TO THE TEXAS LEGISLATURE

4/23/2012 7/8/2011
7/23/2012 10/8/2011
10/23/2012 1/8/2012
4/8/2012
1/23/2013
7/8/2012
4/23/2013
10/8/2012
7/23/2013 1/8/2013
10/23/2013 4/8/2013
1/23/2014 7/8/2013
4/23/2014 10/8/2013
1/8/2014
Event 1 (Jul. 8-9, 2009, North Texas)

Number of Claims by Day Suit Filed

Number of Claims by Day Suit Filed

7/23/2014
Event 2 (Jul. 23-24, 2010, Houston Area)

4/8/2014
10/23/2014
Supplemental Exhibit II: Residential Property Windstorm and Hail Litigation Data by Event (Section II)

7/8/2014
1/23/2015
10/8/2014
4/23/2015 1/8/2015
7/23/2015 4/8/2015
NO SUITS REPORTED FOR THIS EVENT

10/23/2015 7/8/2015
1/23/2016 10/8/2015
1/8/2016
4/23/2016
4/8/2016
 Number of Claims Number of Claims

10
20
30
40
60
70
80

50

0
10
15
20
25

0
5
3/28/2012 6/20/2011

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5/28/2012 9/20/2011
7/28/2012
12/20/2011
9/28/2012
11/28/2012 3/20/2012
1/28/2013 6/20/2012
3/28/2013
9/20/2012
5/28/2013
12/20/2012
7/28/2013
9/28/2013 3/20/2013
11/28/2013 6/20/2013
1/28/2014
9/20/2013
3/28/2014
5/28/2014 12/20/2013
7/28/2014 3/20/2014

TEXAS DEPARTMENT OF INSURANCE

9/28/2014 6/20/2014
11/28/2014
9/20/2014
1/28/2015
3/28/2015 12/20/2014

Event 4 (Mar 28-Apr 5, 2012, Hidalgo County)

5/28/2015 3/20/2015
Event 3 (Jun. 20-22, 2011, Dallas-Fort Worth Area)

Number of Claims by Day of Attorney Involvement*

Number of Claims by Day of Attorney Involvement*

7/28/2015
6/20/2015
9/28/2015
9/20/2015
11/28/2015
1/28/2016 12/20/2015
3/28/2016 3/20/2016
5/28/2016
6/20/2016

Number of Claims Number of Claims

10
20
30
40
50
60
70
80

0
15
20
25

10

0
5

3/28/2012 6/20/2011
5/28/2012
9/20/2011
7/28/2012
12/20/2011

*Date of attorney involvement is the earliest of: (i) date of letter of representation or demand letter; and (ii) date of lawsuit.
9/28/2012
11/28/2012 3/20/2012
1/28/2013 6/20/2012
3/28/2013
9/20/2012
5/28/2013
FINAL PRESENTATION TO THE TEXAS LEGISLATURE

7/28/2013 12/20/2012
9/28/2013 3/20/2013
11/28/2013 6/20/2013
1/28/2014
9/20/2013
3/28/2014
5/28/2014 12/20/2013
7/28/2014 3/20/2014
9/28/2014 6/20/2014
11/28/2014
9/20/2014
1/28/2015
Number of Claims by Day Suit Filed

Number of Claims by Day Suit Filed

3/28/2015 12/20/2014
Event 4 (Mar 28-Apr 5, 2012, Hidalgo County)
Supplemental Exhibit II: Residential Property Windstorm and Hail Litigation Data by Event (Section II)

5/28/2015
Event 3 (Jun. 20-22, 2011, Dallas-Fort Worth Area)

3/20/2015
7/28/2015
6/20/2015
9/28/2015
9/20/2015
11/28/2015
1/28/2016 12/20/2015
3/28/2016 3/20/2016
5/28/2016
6/20/2016
 Number of Claims Number of Claims

10
15
20
25

0
5
10
20
25
30
35
40

15

0
5
4/2/2014 5/27/2013

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5/2/2014
7/27/2013
6/2/2014
7/2/2014 9/27/2013
8/2/2014
11/27/2013
9/2/2014
10/2/2014 1/27/2014
11/2/2014 3/27/2014
12/2/2014
1/2/2015 5/27/2014
2/2/2015 7/27/2014
3/2/2015
4/2/2015 9/27/2014
5/2/2015 11/27/2014
6/2/2015
1/27/2015
7/2/2015

TEXAS DEPARTMENT OF INSURANCE

8/2/2015 3/27/2015
9/2/2015
5/27/2015
10/2/2015

Event 6 (Apr. 2-5, 2014, Collin County)

Event 5 (May 27-30, 2013, Amarillo Area)

11/2/2015 7/27/2015
12/2/2015
9/27/2015
Number of Claims by Day of Attorney Involvement*
Number of Claims by Day of Attorney Involvement*

1/2/2016
2/2/2016 11/27/2015
3/2/2016 1/27/2016
4/2/2016
5/2/2016 3/27/2016
6/2/2016 5/27/2016

Number of Claims Number of Claims

10
15
20
25
30
35
40

0
5

10
15
20
25

0
5
4/2/2014 5/27/2013
5/2/2014
7/27/2013
6/2/2014
7/2/2014 9/27/2013

*Date of attorney involvement is the earliest of: (i) date of letter of representation or demand letter; and (ii) date of lawsuit.
8/2/2014
11/27/2013
9/2/2014
10/2/2014 1/27/2014
11/2/2014 3/27/2014
FINAL PRESENTATION TO THE TEXAS LEGISLATURE

12/2/2014
1/2/2015 5/27/2014
2/2/2015 7/27/2014
3/2/2015
4/2/2015 9/27/2014
5/2/2015 11/27/2014
6/2/2015
7/2/2015 1/27/2015
8/2/2015 3/27/2015
9/2/2015
5/27/2015
10/2/2015
Number of Claims by Day Suit Filed

Number of Claims by Day Suit Filed

Event 6 (Apr. 2-5, 2014, Collin County)
Event 5 (May 27-30, 2013, Amarillo Area)

11/2/2015 7/27/2015
Supplemental Exhibit II: Residential Property Windstorm and Hail Litigation Data by Event (Section II)

12/2/2015
9/27/2015
1/2/2016
2/2/2016 11/27/2015
3/2/2016
1/27/2016
4/2/2016
5/2/2016 3/27/2016
6/2/2016
5/27/2016
 Number of Claims Number of Claims

10
15
20
25

0
5
15
20
25

10

0
5
4/22/2015 6/5/2014

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5/13/2015 7/5/2014
6/3/2015 8/5/2014
9/5/2014
6/24/2015
10/5/2014
7/15/2015
11/5/2014
8/5/2015 12/5/2014
8/26/2015 1/5/2015
9/16/2015 2/5/2015
3/5/2015
10/7/2015
4/5/2015
10/28/2015
5/5/2015
11/18/2015 6/5/2015
12/9/2015 7/5/2015

TEXAS DEPARTMENT OF INSURANCE

12/30/2015 8/5/2015
9/5/2015
1/20/2016
10/5/2015
2/10/2016 11/5/2015

Event 8 (Apr. 22-28, 2015, Bexar County)

3/2/2016
Event 7 (Jun. 5-8, 2014, Panhandle/West Texas)

12/5/2015
1/5/2016
Number of Claims by Day of Attorney Involvement*
Number of Claims by Day of Attorney Involvement*

3/23/2016
4/13/2016 2/5/2016
3/5/2016
5/4/2016
4/5/2016
5/25/2016 5/5/2016
6/15/2016 6/5/2016

Number of Claims Number of Claims

10
15
20
25

0
5
0
5
10
15
20
25

4/22/2015 6/5/2014
5/13/2015 7/5/2014
8/5/2014
6/3/2015

*Date of attorney involvement is the earliest of: (i) date of letter of representation or demand letter; and (ii) date of lawsuit.
9/5/2014
6/24/2015
10/5/2014
7/15/2015 11/5/2014
8/5/2015 12/5/2014
FINAL PRESENTATION TO THE TEXAS LEGISLATURE

8/26/2015 1/5/2015
2/5/2015
9/16/2015
3/5/2015
10/7/2015 4/5/2015
10/28/2015 5/5/2015
11/18/2015 6/5/2015
7/5/2015
12/9/2015
8/5/2015
12/30/2015
9/5/2015
1/20/2016 10/5/2015
Number of Claims by Day Suit Filed
Number of Claims by Day Suit Filed

2/10/2016 11/5/2015
Event 8 (Apr. 22-28, 2015, Bexar County)

3/2/2016 12/5/2015
Event 7 (Jun. 5-8, 2014, Panhandle/West Texas)
Supplemental Exhibit II: Residential Property Windstorm and Hail Litigation Data by Event (Section II)

1/5/2016
3/23/2016
2/5/2016
4/13/2016 3/5/2016
5/4/2016 4/5/2016
5/25/2016 5/5/2016
6/5/2016
6/15/2016
 Number of Claims

0
5
10
15
20
25
6/12/2015

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6/26/2015
7/10/2015
7/24/2015
8/7/2015
8/21/2015
9/4/2015
9/18/2015
10/2/2015
10/16/2015
10/30/2015
11/13/2015
11/27/2015
12/11/2015
12/25/2015
1/8/2016

TEXAS DEPARTMENT OF INSURANCE

1/22/2016
2/5/2016
2/19/2016
3/4/2016
3/18/2016
Event 9 (Jun. 12-13, 2015, North Texas/West Texas)

4/1/2016
Number of Claims by Day of Attorney Involvement*

4/15/2016
4/29/2016
5/13/2016
5/27/2016
6/10/2016
6/24/2016

Number of Claims
0
5
10
15
20
25

6/12/2015
6/26/2015
7/10/2015

*Date of attorney involvement is the earliest of: (i) date of letter of representation or demand letter; and (ii) date of lawsuit.
7/24/2015
8/7/2015
8/21/2015
9/4/2015
9/18/2015
FINAL PRESENTATION TO THE TEXAS LEGISLATURE

10/2/2015
10/16/2015
10/30/2015
11/13/2015
11/27/2015
12/11/2015
12/25/2015
1/8/2016
1/22/2016
2/5/2016
2/19/2016
Number of Claims by Day Suit Filed

3/4/2016
Supplemental Exhibit II: Residential Property Windstorm and Hail Litigation Data by Event (Section II)

3/18/2016
Event 9 (Jun. 12-13, 2015, North Texas/West Texas)

4/1/2016
4/15/2016
4/29/2016
5/13/2016
5/27/2016
6/10/2016
6/24/2016
 FINAL PRESENTATION TO THE TEXAS LEGISLATURE
Supplemental Exhibit III: TDI Residential Property Market Data by Region
(All Data Excludes TWIA, FAIR Plan, and Farm Mutual Insurers)

SUPPLEMENTAL EXHIBIT III

TDI RESIDENTIAL PROPERTY

MARKET DATA

BY REGION

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TEXAS DEPARTMENT OF INSURANCE
 FINAL PRESENTATION TO THE TEXAS LEGISLATURE
Supplemental Exhibit III: TDI Market Data by Region
(All Data Excludes TWIA, FAIR Plan, and Farm Mutual Insurers)

Statewide Central Texas

Loss Ratio (Losses per Dollar of Premium), 2000-2015* Loss Ratio (Losses per Dollar of Premium), 2000-2015*

Loss Ratio (Losses per $1 Premium)

200%
Loss Ratio (Losses per $1 Premium)

200%
175% 175%
150% 150%
125% 125%
60.7% 57.0%
100% 100%
75% 75%
50% 50%
25% 25%
0% 0%

Hail Windstorm Water Damage Hail Windstorm Water Damage

Fire All Other Average Fire All Other Average

Dallas-Fort Worth Metroplex East Texas

Loss Ratio (Losses per Dollar of Premium), 2000-2015* Loss Ratio (Losses per Dollar of Premium), 2000-2015*
Loss Ratio (Losses per $1 Premium)

Loss Ratio (Losses per $1 Premium)

200% 200%
175% 175%
150% 150%
125% 125%
61.5% 65.3%
100% 100%
75% 75%
50% 50%
25% 25%
0% 0%

Hail Windstorm Water Damage Hail Windstorm Water Damage

Fire All Other Average Fire All Other Average

*Claims and losses are on an occurrence year basis (year of loss) and developed by TDI staff to their estimated ultimate settlement value by cause of loss using historic statewide development patterns.
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TEXAS DEPARTMENT OF INSURANCE
 FINAL PRESENTATION TO THE TEXAS LEGISLATURE
Supplemental Exhibit III: TDI Market Data by Region
(All Data Excludes TWIA, FAIR Plan, and Farm Mutual Insurers)

Houston Area and Southeast Texas North Texas (Excluding DFW)

Loss Ratio (Losses per Dollar of Premium), 2000-2015* Loss Ratio (Losses per Dollar of Premium), 2000-2015*
Loss Ratio (Losses per $1 Premium)

Loss Ratio (Losses per $1 Premium)

200% 200%
200.6% 289.8%
175% 175%
150% 150%
70.2%
125% 125%
100% 55.5% 100%
75% 75%
50% 50%
25% 25%
0% 0%

Hail Windstorm Water Damage Hail Windstorm Water Damage

Fire All Other Average Fire All Other Average

Other Seacoast Panhandle

Loss Ratio (Losses per Dollar of Premium), 2000-2015* Loss Ratio (Losses per Dollar of Premium), 2000-2015*
200%
Loss Ratio (Losses per $1 Premium)

200%

Loss Ratio (Losses per $1 Premium)

251.5% 344.7%
175% 175%
150% 150%
125% 125% 88.6%
39.0%
100% 100%
75% 75%
50% 50%
25% 25%
0% 0%

Hail Windstorm Water Damage Hail Windstorm Water Damage

Fire All Other Average Fire All Other Average

*Claims and losses are on an occurrence year basis (year of loss) and developed by TDI staff to their estimated ultimate settlement value by cause of loss using historic statewide development patterns.
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TEXAS DEPARTMENT OF INSURANCE
 FINAL PRESENTATION TO THE TEXAS LEGISLATURE
Supplemental Exhibit III: TDI Market Data by Region
(All Data Excludes TWIA, FAIR Plan, and Farm Mutual Insurers)

South Texas Southwest Texas

Loss Ratio (Losses per Dollar of Premium), 2000-2015* Loss Ratio (Losses per Dollar of Premium), 2000-2015*
Loss Ratio (Losses per $1 Premium)

200%

Loss Ratio (Losses per $1 Premium)

200%
244.3% 319.3% 328.5%
175% 175%
150% 150%
125% 125% 84.4%
70.8%
100% 100%
75% 75%
50% 50%

25% 25%

0% 0%

Hail Windstorm Water Damage Hail Windstorm Water Damage

Fire All Other Average Fire All Other Average

West Texas
Loss Ratio (Losses per Dollar of Premium), 2000-2015*
Loss Ratio (Losses per $1 Premium)

200%
175%
150%
125%
74.6%
100%
75%
50%
25%
0%

Hail Windstorm Water Damage

Fire All Other Average

*Claims and losses are on an occurrence year basis (year of loss) and developed by TDI staff to their estimated ultimate settlement value by cause of loss using historic statewide development patterns.

21 | P a g e
TEXAS DEPARTMENT OF INSURANCE
 FINAL PRESENTATION TO THE TEXAS LEGISLATURE
Supplemental Exhibit III: TDI Market Data by Region
(All Data Excludes TWIA, FAIR Plan, and Farm Mutual Insurers)

Statewide Central Texas

Claim Frequency (per 100 Policies), 2000-2015* Claim Frequency (per 100 Policies), 2000-2015*
30.0 30.0

Paid Claims per 100 Policies

Paid Claims per 100 Policies

25.0 25.0

20.0 20.0

11.0 9.8
15.0 15.0

10.0 10.0

5.0 5.0

0.0 0.0

Hail Windstorm Water Damage Hail Windstorm Water Damage

Fire All Other Average Fire All Other Average

Dallas-Fort Worth Metroplex East Texas

Claim Frequency (per 100 Policies), 2000-2015* Claim Frequency (per 100 Policies), 2000-2015*
30.0 30.0
Paid Claims per 100 Policies

Paid Claims per 100 Policies

25.0 25.0

20.0 20.0
12.0
10.3
15.0 15.0

10.0 10.0

5.0 5.0

0.0 0.0

Hail Windstorm Water Damage Hail Windstorm Water Damage

Fire All Other Average Fire All Other Average

*Claims and losses are on an occurrence year basis (year of loss) and developed by TDI staff to their estimated ultimate settlement value by cause of loss using historic statewide development patterns.

22 | P a g e
TEXAS DEPARTMENT OF INSURANCE
 FINAL PRESENTATION TO THE TEXAS LEGISLATURE
Supplemental Exhibit III: TDI Market Data by Region
(All Data Excludes TWIA, FAIR Plan, and Farm Mutual Insurers)

Houston Area and Southeast Texas North Texas (Excluding DFW)

Claim Frequency (per 100 Policies), 2000-2015* Claim Frequency (per 100 Policies), 2000-2015*
30.0 30.0
Paid Claims per 100 Policies

Paid Claims per 100 Policies

47.0 32.0
25.0 25.0

20.0 20.0 13.3

10.0
15.0 15.0
10.0 10.0
5.0
5.0
0.0
0.0

Hail Windstorm Water Damage Hail Windstorm Water Damage

Fire All Other Average Fire All Other Average

Other Seacoast Panhandle

Claim Frequency (per 100 Policies), 2000-2015* Claim Frequency (per 100 Policies), 2000-2015*
30.0
30.0
Paid Claims per 100 Policies

Paid Claims per 100 Policies

25.0
25.0
35.5 47.5 16.5
20.0
20.0
15.0
5.7 15.0
10.0 10.0
5.0 5.0
0.0 0.0

Hail Windstorm Water Damage Hail Windstorm Water Damage

Fire All Other Average Fire All Other Average

*Claims and losses are on an occurrence year basis (year of loss) and developed by TDI staff to their estimated ultimate settlement value by cause of loss using historic statewide development patterns.
23 | P a g e
TEXAS DEPARTMENT OF INSURANCE
 FINAL PRESENTATION TO THE TEXAS LEGISLATURE
Supplemental Exhibit III: TDI Market Data by Region
(All Data Excludes TWIA, FAIR Plan, and Farm Mutual Insurers)

South Texas Southwest Texas

Claim Frequency (per 100 Policies), 2000-2015* Claim Frequency (per 100 Policies), 2000-2015*
30.0 30.0
Paid Claims per 100 Policies

47.0

Paid Claims per 100 Policies

25.0 25.0

20.0 20.0
11.8
15.0 8.5 15.0

10.0 10.0

5.0 5.0

0.0 0.0

Hail Windstorm Water Damage Hail Windstorm Water Damage

Fire All Other Average Fire All Other Average

West Texas
Claim Frequency (per 100 Policies), 2000-2015*
30.0
31.9
Paid Claims per 100 Policies

25.0
14.9
20.0

15.0

10.0

5.0

0.0

Hail Windstorm Water Damage

Fire All Other Average

*Claims and losses are on an occurrence year basis (year of loss) and developed by TDI staff to their estimated ultimate settlement value by cause of loss using historic statewide development patterns.
24 | P a g e
TEXAS DEPARTMENT OF INSURANCE
 FINAL PRESENTATION TO THE TEXAS LEGISLATURE
Supplemental Exhibit III: TDI Market Data by Region
(All Data Excludes TWIA, FAIR Plan, and Farm Mutual Insurers)

Statewide Central Texas

Inflation-Adjusted Average Loss per Policy, 2000-2015* Inflation-Adjusted Average Loss per Policy, 2000-2015*
$3,000 $3,000

$2,500

Average Loss per Policy

$2,500
Average Loss per Policy

$2,000 $2,000

$1,500 $919 $1,500 $684

$1,000 $1,000

$500 $500

$- $0

Hail Windstorm Water Damage Hail Windstorm Water Damage

Fire All Other 16- Yr. Avg. All Perils Fire All Other Average

Dallas-Fort Worth Metroplex East Texas

Inflation-Adjusted Average Loss per Policy, 2000-2015* Inflation-Adjusted Average Loss per Policy, 2000-2015*
$3,000 $3,000

$2,500 $2,500
Average Loss per Policy

Average Loss per Policy

$2,000 $2,000
$990
$1,500 $1,500 $806

$1,000 $1,000

$500 $500

$0 $0

Hail Windstorm Water Damage Hail Windstorm Water Damage

Fire All Other Average Fire All Other Average

*Claims and losses are on an occurrence year basis (year of loss) and developed by TDI staff to their estimated ultimate settlement value by cause of loss using historic statewide development patterns.
Claims were adjusted for inflation based on changes in the average insured value for dwellings.
25 | P a g e
TEXAS DEPARTMENT OF INSURANCE
 FINAL PRESENTATION TO THE TEXAS LEGISLATURE
Supplemental Exhibit III: TDI Market Data by Region
(All Data Excludes TWIA, FAIR Plan, and Farm Mutual Insurers)

Houston Area and Southeast Texas North Texas (Excluding DFW)

Inflation-Adjusted Average Loss per Policy, 2000-2015* Inflation-Adjusted Average Loss per Policy, 2000-2015*
$3,000 $3,000

Average Loss per Policy

$2,500 $2,500
Average Loss per Policy

$3,236 $4,694
$2,000 $2,000
$1,062
$1,500 $1,500

$1,000 $1,000

$500 $500

$0 $0

Hail Windstorm Water Damage Hail Windstorm Water Damage

Fire All Other Average Fire All Other Average

Other Seacoast Panhandle

Inflation-Adjusted Average Loss per Policy, 2000-2015* Inflation-Adjusted Average Loss per Policy, 2000-2015*
$3,000 $3,000

$2,500 $2,500
Average Loss per Policy

Average Loss per Policy

$4,099 $3,498 $1,470
$5,448
$2,000 $2,000

$1,500 $647 $1,500

$1,000 $1,000

$500 $500

$0 $0

Hail Windstorm Water Damage Hail Windstorm Water Damage

Fire All Other Average Fire All Other Average

*Claims and losses are on an occurrence year basis (year of loss) and developed by TDI staff to their estimated ultimate settlement value by cause of loss using historic statewide development patterns.
Claims were adjusted for inflation based on changes in the average insured value for dwellings.

26 | P a g e
TEXAS DEPARTMENT OF INSURANCE
 FINAL PRESENTATION TO THE TEXAS LEGISLATURE
Supplemental Exhibit III: TDI Market Data by Region
(All Data Excludes TWIA, FAIR Plan, and Farm Mutual Insurers)

South Texas Southwest Texas

Inflation-Adjusted Average Loss per Policy, 2000-2015* Inflation-Adjusted Average Loss per Policy, 2000-2015*
$3,000 $3,000

Average Loss per Policy

$2,500 $2,500
Average Loss per Policy

$3,629

$2,000 $2,000

$1,500 $1,500
$820 $596
$1,000 $1,000

$500 $500

$0 $0

Hail Windstorm Water Damage Hail Windstorm Water Damage

Fire All Other Average Fire All Other Average

West Texas
Inflation-Adjusted Average Loss per Policy, 2000-2015*
$3,000

$2,500
Average Loss per Policy

$2,000
$1,139
$1,500

$1,000

$500

$0

Hail Windstorm Water Damage

Fire All Other Average

*Claims and losses are on an occurrence year basis (year of loss) and developed by TDI staff to their estimated ultimate settlement value by cause of loss using historic statewide development patterns.
Claims were adjusted for inflation based on changes in the average insured value for dwellings.

27 | P a g e
TEXAS DEPARTMENT OF INSURANCE
 FINAL PRESENTATION TO THE TEXAS LEGISLATURE
Supplemental Exhibit III: TDI Market Data by Region
(All Data Excludes TWIA, FAIR Plan, and Farm Mutual Insurers)

Central Texas
Statewide Hail Loss Ratio (Losses per Dollar of Premium), 2000-2015*
Hail Loss Ratio (Losses per Dollar of Premium), 2000-2015*

Hail Loss Ratio (Losses per $1 Premium)

150%
Hail Loss Ratio (Losses per $1 Premium)

150%
125%
125%
100%
100%
75%
75%
21%
50% 50% 20%

25% 25%

0% 0%

Hail Average Hail Average

East Texas
Dallas-Fort Worth Metroplex Hail Loss Ratio (Losses per Dollar of Premium), 2000-2015*

Hail Loss Ratio (Losses per $1 Premium)

Hail Loss Ratio (Losses per Dollar of Premium), 2000-2015*
Hail Loss Ratio (Losses per $1 Premium)

150%
150%
125%
125%
100%
100%

75% 75%

29% 50% 12%

50%

25% 25%

0% 0%

Hail Average Hail Average

*Claims and losses are on an occurrence year basis (year of loss) and developed by TDI staff to their estimated ultimate settlement value by cause of loss using historic statewide development patterns.

28 | P a g e
TEXAS DEPARTMENT OF INSURANCE
 FINAL PRESENTATION TO THE TEXAS LEGISLATURE
Supplemental Exhibit III: TDI Market Data by Region
(All Data Excludes TWIA, FAIR Plan, and Farm Mutual Insurers)

Houston Area and Southeast Texas North Texas (Excluding DFW)

Hail Loss Ratio (Losses per Dollar of Premium), 2000-2015* Hail Loss Ratio (Losses per Dollar of Premium), 2000-2015*
Hail Loss Ratio (Losses per $1 Premium)

150% 150%

Hail Loss Ratio (Losses per $1 Premium)

125% 125%

100% 100%

75% 75% 28%

50% 50%
6%
25% 25%

0% 0%

Hail Average Hail Average

Other Seacoast Panhandle

Hail Loss Ratio (Losses per Dollar of Premium), 2000-2015* Hail Loss Ratio (Losses per Dollar of Premium), 2000-2015*

Hail Loss Ratio (Losses per $1 Premium)

Hail Loss Ratio (Losses per $1 Premium)

150% 150%
314.8%
125% 125%
155.0%
100% 100%
60%
75% 75%

50% 3% 50%

25% 25%

0% 0%

Hail Average Hail Average

*Claims and losses are on an occurrence year basis (year of loss) and developed by TDI staff to their estimated ultimate settlement value by cause of loss using historic statewide development patterns

29 | P a g e
TEXAS DEPARTMENT OF INSURANCE
 FINAL PRESENTATION TO THE TEXAS LEGISLATURE
Supplemental Exhibit III: TDI Market Data by Region
(All Data Excludes TWIA, FAIR Plan, and Farm Mutual Insurers)

South Texas Southwest Texas

Hail Loss Ratio (Losses per $1 Premium)

Hail Loss Ratio (Losses per Dollar of Premium), 2000-2015* Hail Loss Ratio (Losses per Dollar of Premium), 2000-2015*

Hail Loss Ratio (Losses per $1 Premium)

150% 150%
268.0% 266.4%
125% 125%

100% 100%

75% 75% 44%

28%
50% 50%

25% 25%

0% 0%

Hail Average Hail Average

West Texas
Hail Loss Ratio (Losses per Dollar of Premium), 2000-2015*
Hail Loss Ratio (Losses per $1 Premium)

150%

125%
150.2%
100%
45%
75%

50%

25%

0%

Hail Average

*Claims and losses are on an occurrence year basis (year of loss) and developed by TDI staff to their estimated ultimate settlement value by cause of loss using historic statewide development patterns.

30 | P a g e
TEXAS DEPARTMENT OF INSURANCE
 FINAL PRESENTATION TO THE TEXAS LEGISLATURE
Supplemental Exhibit III: TDI Market Data by Region
(All Data Excludes TWIA, FAIR Plan, and Farm Mutual Insurers)

Statewide Central Texas

Windstorm Loss Ratio (Losses per Dollar of Premium), 2000-2015* Windstorm Loss Ratio (Losses per Dollar of Premium), 2000-2015*
Wind Loss Ratio (Losses per $1 Premium)

Wind Loss Ratio (Losses per $1 Premium)

150% 150%

125% 125%

100% 100%

75% 75%
13%
50% 50%
6%
25% 25%

0% 0%

Windstorm Average Windstorm Average

Dallas-Fort Worth Metroplex East Texas

Windstorm Loss Ratio (Losses per Dollar of Premium), 2000-2015* Windstorm Loss Ratio (Losses per Dollar of Premium), 2000-2015*

Wind Loss Ratio (Losses per $1 Premium)

Wind Loss Ratio (Losses per $1 Premium)

150% 150%

125% 125%

100% 100%

75% 75%
19%
50% 6% 50%

25% 25%

0% 0%

Windstorm Average Windstorm Average

*Claims and losses are on an occurrence year basis (year of loss) and developed by TDI staff to their estimated ultimate settlement value by cause of loss using historic statewide development patterns.

31 | P a g e
TEXAS DEPARTMENT OF INSURANCE
 FINAL PRESENTATION TO THE TEXAS LEGISLATURE
Supplemental Exhibit III: TDI Market Data by Region
(All Data Excludes TWIA, FAIR Plan, and Farm Mutual Insurers)

Houston Area and Southeast Texas North Texas (Excluding DFW)

Windstorm Loss Ratio (Losses per Dollar of Premium), 2000-2015* Windstorm Loss Ratio (Losses per Dollar of Premium), 2000-2015*
Wind Loss Ratio (Losses per $1 Premium)

Wind Loss Ratio (Losses per $1 Premium)

150% 150%
261.3%
125% 125%

100% 100%

75% 75%
24%
11%
50% 50%

25% 25%

0% 0%

Windstorm Average Windstorm Average

Other Seacoast Panhandle

Windstorm Loss Ratio (Losses per Dollar of Premium), 2000-2015* Windstorm Loss Ratio (Losses per Dollar of Premium), 2000-2015*
Wind Loss Ratio (Losses per $1 Premium)

Wind Loss Ratio (Losses per $1 Premium)

150% 150%

125% 125%

100% 100%

75% 75%

50% 5% 50%
8%
25% 25%

0% 0%

Windstorm Average Windstorm Average

*Claims and losses are on an occurrence year basis (year of loss) and developed by TDI staff to their estimated ultimate settlement value by cause of loss using historic statewide development patterns.

32 | P a g e
TEXAS DEPARTMENT OF INSURANCE
 FINAL PRESENTATION TO THE TEXAS LEGISLATURE
Supplemental Exhibit III: TDI Market Data by Region
(All Data Excludes TWIA, FAIR Plan, and Farm Mutual Insurers)

South Texas Southwest Texas

Windstorm Loss Ratio (Losses per Dollar of Premium), 2000-2015* Windstorm Loss Ratio (Losses per Dollar of Premium), 2000-2015*
Wind Loss Ratio (Losses per $1 Premium)

Wind Loss Ratio (Losses per $1 Premium)

150% 150%

125% 125%

100% 100%

75% 75%
13% 14%
50% 50%

25% 25%

0% 0%

Windstorm Average Windstorm Average

West Texas
Windstorm Loss Ratio (Losses per Dollar of Premium), 2000-2015*
Wind Loss Ratio (Losses per $1 Premium)

150%

125%

100%

75%
9%
50%

25%

0%

Windstorm Average

*Claims and losses are on an occurrence year basis (year of loss) and developed by TDI staff to their estimated ultimate settlement value by cause of loss using historic statewide development patterns.

33 | P a g e
TEXAS DEPARTMENT OF INSURANCE
 FINAL PRESENTATION TO THE TEXAS LEGISLATURE
Supplemental Exhibit III: TDI Market Data by Region
(All Data Excludes TWIA, FAIR Plan, and Farm Mutual Insurers)

Statewide Central Texas

Hail Claim Frequency (per 100 Policies), 2000-2015* Hail Claim Frequency (per 100 Policies), 2000-2015*
30.0 30.0

Paid Hail Claims per 100 Policies

25.0
Paid Hail Claims per 100 Policies

24.0
20.0
18.0
15.0
3.8
12.0 10.0
3.9
6.0 5.0

0.0
0.0

Hail Average
Hail 16-Yr. Avg.

Dallas-Fort Worth Metroplex East Texas

Hail Claim Frequency (per 100 Policies), 2000-2015* Hail Claim Frequency (per 100 Policies), 2000-2015*
30.0 30.0

Paid Hail Claims per 100 Policies

Paid Hail Claims per 100 Policies

25.0 25.0

20.0 20.0

15.0 15.0
5.6
10.0 10.0 2.4
5.0 5.0

0.0 0.0

Hail Average
Hail Average

*Claims and losses are on an occurrence year basis (year of loss) and developed by TDI staff to their estimated ultimate settlement value by cause of loss using historic statewide development patterns.
34 | P a g e
TEXAS DEPARTMENT OF INSURANCE
 FINAL PRESENTATION TO THE TEXAS LEGISLATURE
Supplemental Exhibit III: TDI Market Data by Region
(All Data Excludes TWIA, FAIR Plan, and Farm Mutual Insurers)

Houston Area and Southeast Texas North Texas (Excluding DFW)

Hail Claim Frequency (per 100 Policies), 2000-2015* Hail Claim Frequency (per 100 Policies), 2000-2015*
30.0 30.0
Paid Hail Claims per 100 Policies

Paid Hail Claims per 100 Policies

25.0 25.0

20.0 20.0
10.1
15.0 15.0

10.0 10.0
1.4
5.0 5.0

0.0 0.0

Hail Average Hail Average

Other Seacoast Panhandle

Hail Claim Frequency (per 100 Policies), 2000-2015* Hail Claim Frequency (per 100 Policies), 2000-2015*
30.0 30.0
Paid Hail Claims per 100 Policies

Paid Hail Claims per 100 Policies

25.0 25.0
47.5
20.0 20.0
35.5 10.1
15.0 15.0

10.0 10.0
0.6
5.0 5.0

0.0 0.0

Hail Average Hail Average

*Claims and losses are on an occurrence year basis (year of loss) and developed by TDI staff to their estimated ultimate settlement value by cause of loss using historic statewide development patterns.

35 | P a g e
TEXAS DEPARTMENT OF INSURANCE
 FINAL PRESENTATION TO THE TEXAS LEGISLATURE
Supplemental Exhibit III: TDI Market Data by Region
(All Data Excludes TWIA, FAIR Plan, and Farm Mutual Insurers)

South Texas Southwest Texas

Hail Claim Frequency (per 100 Policies), 2000-2015* Hail Claim Frequency (per 100 Policies), 2000-2015*
30.0 30.0
Paid Hail Claims per 100 Policies

Paid Hail Claims per 100 Policies

25.0 25.0

20.0 20.0

15.0 15.0
4.8
10.0 2.5 10.0

5.0 5.0

0.0 0.0

Hail Average Hail Average

West Texas
Hail Claim Frequency (per 100 Policies), 2000-2015*
30.0
Paid Hail Claims per 100 Policies

25.0

20.0

15.0 7.7

10.0

5.0

0.0

Hail Average

*Claims and losses are on an occurrence year basis (year of loss) and developed by TDI staff to their estimated ultimate settlement value by cause of loss using historic statewide development patterns.

36 | P a g e
TEXAS DEPARTMENT OF INSURANCE
 FINAL PRESENTATION TO THE TEXAS LEGISLATURE
Supplemental Exhibit III: TDI Market Data by Region
(All Data Excludes TWIA, FAIR Plan, and Farm Mutual Insurers)

Statewide Central Texas

Windstorm Claim Frequency (per 100 Policies), 2000-2015* Windstorm Claim Frequency (per 100 Policies), 2000-2015*

Paid Windstorm Claims per 100 Policies

30.0
30.0
Paid Claims per 100 Policies

25.0
24.0
20.0

18.0 15.0

12.0 10.0
2.6 1.6
5.0
6.0
0.0
0.0

Windstorm Average
Windstorm Average

Dallas-Fort Worth Metroplex East Texas

Windstorm Claim Frequency (per 100 Policies), 2000-2015*
Paid Windstorm Claims per 100 Policies

Windstorm Claim Frequency (per 100 Policies), 2000-2015*

Paid Windstorm Claims per 100 Policies

30.0 30.0

25.0 25.0

20.0 20.0

15.0 15.0

10.0 10.0 3.5

1.7
5.0 5.0

0.0 0.0

Windstorm Average Windstorm Average

*Claims and losses are on an occurrence year basis (year of loss) and developed by TDI staff to their estimated ultimate settlement value by cause of loss using historic statewide development patterns.

37 | P a g e
TEXAS DEPARTMENT OF INSURANCE
 FINAL PRESENTATION TO THE TEXAS LEGISLATURE
Supplemental Exhibit III: TDI Market Data by Region
(All Data Excludes TWIA, FAIR Plan, and Farm Mutual Insurers)

Houston Area and Southeast Texas North Texas (Excluding DFW)

Windstorm Claim Frequency (per 100 Policies), 2000-2015* Windstorm Claim Frequency (per 100 Policies), 2000-2015*

Paid Windstorm Claims per 100 Policies

Paid Windstorm Claims per 100 Policies

30.0 30.0
47.0
25.0 25.0

20.0 20.0

15.0 15.0
4.5
10.0 10.0 2.1

5.0 5.0

0.0 0.0

Windstorm Average Windstorm Average

Other Seacoast Panhandle

Windstorm Claim Frequency (per 100 Policies), 2000-2015* Windstorm Claim Frequency (per 100 Policies), 2000-2015*

Paid Windstorm Claims per 100 Policies

Paid Windstorm Claims per 100 Policies

30.0 30.0

25.0 25.0

20.0 20.0

15.0 15.0

10.0 1.5 10.0

2.1
5.0 5.0

0.0 0.0

Windstorm Average Windstorm Average

*Claims and losses are on an occurrence year basis (year of loss) and developed by TDI staff to their estimated ultimate settlement value by cause of loss using historic statewide development patterns.

38 | P a g e
TEXAS DEPARTMENT OF INSURANCE
 FINAL PRESENTATION TO THE TEXAS LEGISLATURE
Supplemental Exhibit III: TDI Market Data by Region
(All Data Excludes TWIA, FAIR Plan, and Farm Mutual Insurers)

South Texas Southwest Texas

Windstorm Claim Frequency (per 100 Policies), 2000-2015* Windstorm Claim Frequency (per 100 Policies), 2000-2015*

Paid Windstorm Claims per 100 Policies

Paid Windstorm Claims per 100 Policies

30.0 30.0

25.0 25.0

20.0 20.0

15.0 15.0
2.4
10.0 2.5 10.0

5.0 5.0

0.0 0.0

Windstorm Average Windstorm Average

West Texas
Windstorm Claim Frequency (per 100 Policies), 2000-2015*
30.0
Paid Windstorm Claims per 100 Policies

25.0

20.0

15.0

10.0 2.5

5.0

0.0

Windstorm Average

*Claims and losses are on an occurrence year basis (year of loss) and developed by TDI staff to their estimated ultimate settlement value by cause of loss using historic statewide development patterns.
39 | P a g e
TEXAS DEPARTMENT OF INSURANCE
 FINAL PRESENTATION TO THE TEXAS LEGISLATURE
Supplemental Exhibit III: TDI Market Data by Region
(All Data Excludes TWIA, FAIR Plan, and Farm Mutual Insurers)

Central Texas
Statewide Inflation-Adjusted Avg. Hail Loss per Policy, 2000-2015*
Inflation-Adjusted Average Hail Loss per Policy, 2000-2015* $2,500
$2,500

Avg. Hail Loss per Policy

$2,000
Average Loss per Policy

$2,000
$1,500
$1,500
$244
$1,000
$1,000
$315 $500
$500
$0
$0

Hail Average
Hail Average

Dallas-Fort Worth Metroplex East Texas

Inflation-Adjusted Avg. Hail Loss per Policy, 2000-2015* Inflation-Adjusted Avg. Hail Loss per Policy, 2000-2015*
$2,500 $2,500
Avg. Hail Loss per Policy

Avg. Hail Loss per Policy

$2,000 $2,000

$1,500 $1,500

$469
$1,000 $1,000
$157
$500 $500

$0 $0

Hail Average Hail Average

*Claims and losses are on an occurrence year basis (year of loss) and developed by TDI staff to their estimated ultimate settlement value by cause of loss using historic statewide development patterns.
Claims were adjusted for inflation based on changes in the average insured value for dwellings.

40 | P a g e
TEXAS DEPARTMENT OF INSURANCE
 FINAL PRESENTATION TO THE TEXAS LEGISLATURE
Supplemental Exhibit III: TDI Market Data by Region
(All Data Excludes TWIA, FAIR Plan, and Farm Mutual Insurers)

Houston Area and Southeast Texas North Texas (Excluding DFW)

Inflation-Adjusted Avg. Hail Loss per Policy, 2000-2015* Inflation-Adjusted Avg. Hail Loss per Policy, 2000-2015*
$2,500 $2,500
Avg. Hail Loss per Policy

Avg. Hail Loss per Policy

$2,000 $2,000

$1,500 $1,500

$429
$1,000 $1,000
$131
$500 $500

$0 $0

Hail Average Hail Average

Other Seacoast Panhandle

Inflation-Adjusted Avg. Hail Loss per Policy, 2000-2015* Inflation-Adjusted Avg. Hail Loss per Policy, 2000-2015*
$2,500
$2,500
$3,140

Avg. Hail Loss per Policy

$2,000
Avg. Hail Loss per Policy

$2,000 $4,996

$1,500 $1,012
$1,500

$1,000
$1,000
$38
$500
$500

$0
$0

Hail Average
Hail Average

*Claims and losses are on an occurrence year basis (year of loss) and developed by TDI staff to their estimated ultimate settlement value by cause of loss using historic statewide development patterns.
Claims were adjusted for inflation based on changes in the average insured value for dwellings.
41 | P a g e
TEXAS DEPARTMENT OF INSURANCE
 FINAL PRESENTATION TO THE TEXAS LEGISLATURE
Supplemental Exhibit III: TDI Market Data by Region
(All Data Excludes TWIA, FAIR Plan, and Farm Mutual Insurers)

South Texas Southwest Texas

Inflation-Adjusted Avg. Hail Loss per Policy, 2000-2015* Inflation-Adjusted Avg. Hail Loss per Policy, 2000-2015*
$2,500 $2,500
Avg. Hail Loss per Policy

Avg. Hail Loss per Policy

$2,000 $3,071 $2,000
$1,837
$1,500 $1,500
$320
$1,000 $1,000
$302
$500 $500

$0 $0

Hail Average Hail Average

West Texas
Inflation-Adjusted Avg. Hail Loss per Policy, 2000-2015*
$2,500
Avg. Hail Loss per Policy

$2,000

$677
$1,500

$1,000

$500

$0

Hail Average

*Claims and losses are on an occurrence year basis (year of loss) and developed by TDI staff to their estimated ultimate settlement value by cause of loss using historic statewide development patterns.
Claims were adjusted for inflation based on changes in the average insured value for dwellings.
42 | P a g e
TEXAS DEPARTMENT OF INSURANCE
 FINAL PRESENTATION TO THE TEXAS LEGISLATURE
Supplemental Exhibit III: TDI Market Data by Region
(All Data Excludes TWIA, FAIR Plan, and Farm Mutual Insurers)

Statewide
Inflation-Adjusted Average Windstorm Loss per Policy, 2000-2015* Central Texas
$2,500 Inflation-Adjusted Avg. Windstorm Loss per Policy, 2000-2015
$2,500

Avg. Windstorm Loss per Policy

Average Loss per per Policy

$2,000 $2,000

$1,500 $1,500

$1,000 $1,000
$73
$194 $500
$500
$0
$0

Windstorm Average
Windstorm Average

Dallas-Fort Worth Metroplex East Texas

Inflation-Adjusted Avg. Windstorm Loss per Policy, 2000-2015* Inflation-Adjusted Avg. Windstorm Loss per Policy, 2000-2015*
$2,500 $2,500
Avg. Windstorm Loss per Policy

Avg. Windstorm Loss per Policy

$2,000 $2,000

$1,500 $1,500

$244
$1,000 $1,000
$103
$500 $500

$0 $0

Windstorm Average Windstorm Average

*Claims and losses are on an occurrence year basis (year of loss) and developed by TDI staff to their estimated ultimate settlement value by cause of loss using historic statewide development patterns.
Claims were adjusted for inflation based on changes in the average insured value for dwellings.
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TEXAS DEPARTMENT OF INSURANCE
 FINAL PRESENTATION TO THE TEXAS LEGISLATURE
Supplemental Exhibit III: TDI Market Data by Region
(All Data Excludes TWIA, FAIR Plan, and Farm Mutual Insurers)

Houston Area and Southeast Texas North Texas (Excluding DFW)

Inflation-Adjusted Avg. Windstorm Loss per Policy, 2000-2015* Inflation-Adjusted Avg. Windstorm Loss per Policy, 2000-2015*
$2,500 $2,500
Avg. Windstorm Loss per Policy

Avg. Windstorm Loss per Policy

$4,324
$2,000 $2,000

$1,500 $1,500
$448
$1,000 $1,000 $157

$500 $500

$0 $0

Windstorm Average Windstorm Average

Other Seacoast Panhandle

Inflation-Adjusted Avg. Windstorm Loss per Policy, 2000-2015* Inflation-Adjusted Avg. Windstorm Loss per Policy, 2000-2015*
$2,500 $2,500
Avg. Windstorm Loss per Policy

Avg. Windstorm Loss per Policy

$2,000 $2,000

$1,500 $1,500

$1,000 $84 $1,000 $129

$500 $500

$0 $0

Windstorm Average Windstorm Average

*Claims and losses are on an occurrence year basis (year of loss) and developed by TDI staff to their estimated ultimate settlement value by cause of loss using historic statewide development patterns.
Claims were adjusted for inflation based on changes in the average insured value for dwellings.
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TEXAS DEPARTMENT OF INSURANCE
 FINAL PRESENTATION TO THE TEXAS LEGISLATURE
Supplemental Exhibit III: TDI Market Data by Region
(All Data Excludes TWIA, FAIR Plan, and Farm Mutual Insurers)

South Texas Southwest Texas

Inflation-Adjusted Avg. Windstorm Loss per Policy, 2000-2015* Inflation-Adjusted Avg. Windstorm Loss per Policy, 2000-2015*
$2,500 $2,500
Avg. Windstorm Loss per Policy

Avg. Windstorm Loss per Policy

$2,000 $2,000

$1,500 $1,500

$1,000 $1,000
$144 $104
$500 $500

$0 $0

Windstorm Average Windstorm Average

West Texas
Inflation-Adjusted Avg. Windstorm Loss per Policy, 2000-2015*
$2,500
Avg. Windstorm Loss per Policy

$2,000

$1,500

$1,000
$148
$500

$0

Windstorm Average

*Claims and losses are on an occurrence year basis (year of loss) and developed by TDI staff to their estimated ultimate settlement value by cause of loss using historic statewide development patterns.
Claims were adjusted for inflation based on changes in the average insured value for dwellings.
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TEXAS DEPARTMENT OF INSURANCE
 FINAL PRESENTATION TO THE TEXAS LEGISLATURE
Supplemental Exhibit III: TDI Market Data by Region
(All Data Excludes TWIA, FAIR Plan, and Farm Mutual Insurers)

Statewide Central Texas

Inflation-Adjusted Average Hail Loss per Hail Claim, 2000-2015* Inflation-Adjusted Average Loss per Hail Claim, 2000-2015*
$18,000 $18,000
Average Loss per Hail Claim

Average Loss per Hail Claim

$15,000 $15,000

$12,000 $12,000

$9,000 $9,000

$6,000 $6,000

$3,000 $3,000

$- $-

Hail (Infl. Adj.) Hail (Actual) Hail (Infl. Adj.) Hail (Actual)
Best Fit: Growth Rate 3.1% Best Fit (Actual): Growth Rate 7.8% Best Fit (Infl. Adj.): Growth Rate 3.8% Best Fit (Actual): Growth Rate 8.6%

Dallas-Fort Worth Metroplex East Texas

Inflation-Adjusted Average Loss per Hail Claim, 2000-2015* Inflation-Adjusted Average Loss per Hail Claim, 2000-2015*
$18,000 $18,000
Average Loss per Hail Claim

Average Loss per Hail Claim

$15,000 $15,000

$12,000 $12,000

$9,000 $9,000

$6,000 $6,000

$3,000 $3,000

$- $-

Hail (Infl. Adj.) Hail (Actual) Hail (Infl. Adj.) Hail (Actual)
Best Fit (Infl. Adj.): Growth Rate 3.4% Best Fit (Actual): Growth Rate 7.6% Best Fit (Infl. Adj.): Growth Rate 2.5% Best Fit (Actual): Growth Rate 7.3%

*Claims and losses are on an occurrence year basis (year of loss) and developed by TDI staff to their estimated ultimate settlement value by cause of loss using historic statewide development patterns.
Claims were adjusted for inflation based on changes in the average insured value for dwellings.
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TEXAS DEPARTMENT OF INSURANCE
 FINAL PRESENTATION TO THE TEXAS LEGISLATURE
Supplemental Exhibit III: TDI Market Data by Region
(All Data Excludes TWIA, FAIR Plan, and Farm Mutual Insurers)

Houston Area and Southeast Texas North Texas (Excluding DFW)

Inflation-Adjusted Average Loss per Hail Claim, 2000-2015* Inflation-Adjusted Average Loss per Hail Claim, 2000-2015*
$18,000 $18,000
Average Loss per Hail Claim

Average Loss per Hail Claim

$15,000 $15,000

$12,000 $12,000

$9,000 $9,000

$6,000 $6,000

$3,000 $3,000

$- $-

Hail (Infl. Adj.) Hail (Actual) Hail (Infl. Adj.) Hail (Actual)
Best Fit (Infl. Adj.): Growth Rate 2.0% Best Fit (Actual): Growth Rate 6.8% Best Fit (Infl. Adj.): Growth Rate 3.7% Best Fit (Actual): Growth Rate 8.7%

Other Seacoast Panhandle

Inflation-Adjusted Average Loss per Hail Claim, 2000-2015* Inflation-Adjusted Average Loss per Hail Claim, 2000-2015*
$18,000 $18,000

Average Loss per Hail Claim

Average Loss per Hail Claim

$15,000 $15,000

$12,000 $12,000

$9,000 $9,000

$6,000 $6,000

$3,000 $3,000

$- $-

Hail (Infl. Adj.) Hail (Actual) Hail (Infl. Adj.) Hail (Actual)
Best Fit (Infl. Adj.): Growth Rate 3.1% Best Fit (Actual): Growth Rate 0.6% Best Fit (Infl. Adj.): Growth Rate 2.4% Best Fit (Actual): Growth Rate 7.1%

*Claims and losses are on an occurrence year basis (year of loss) and developed by TDI staff to their estimated ultimate settlement value by cause of loss using historic statewide development patterns.
Claims were adjusted for inflation based on changes in the average insured value for dwellings.
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TEXAS DEPARTMENT OF INSURANCE
 FINAL PRESENTATION TO THE TEXAS LEGISLATURE
Supplemental Exhibit III: TDI Market Data by Region
(All Data Excludes TWIA, FAIR Plan, and Farm Mutual Insurers)

South Texas Southwest Texas

Inflation-Adjusted Average Loss per Hail Claim, 2000-2015* Inflation-Adjusted Average Loss per Hail Claim, 2000-2015*
$18,000 $18,000

Average Loss per Hail Claim

Average Loss per Hail Claim

$15,000 $15,000

$12,000 $12,000

$9,000 $9,000

$6,000 $6,000

$3,000 $3,000

$- $-

Hail (Infl. Adj.) Hail (Actual) Hail (Infl. Adj.) Hail (Actual)
Best Fit (Infl. Adj.): Growth Rate 6.9% Best Fit (Actual): Growth Rate 11.3% Best Fit (Infl. Adj.): Growth Rate 5.2% Best Fit (Actual): Growth Rate 9.3%

West Texas
Inflation-Adjusted Average Loss per Hail Claim, 2000-2015*
$18,000
Average Loss per Hail Claim

$15,000

$12,000

$9,000

$6,000

$3,000

$-

Hail (Infl. Adj.) Hail (Actual)

Best Fit (Infl. Adj.): Growth Rate 3.3% Best Fit (Actual): Growth Rate 8.4%

*Claims and losses are on an occurrence year basis (year of loss) and developed by TDI staff to their estimated ultimate settlement value by cause of loss using historic statewide development patterns.
Claims were adjusted for inflation based on changes in the average insured value for dwellings.
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TEXAS DEPARTMENT OF INSURANCE
 FINAL PRESENTATION TO THE TEXAS LEGISLATURE
Supplemental Exhibit III: TDI Market Data by Region
(All Data Excludes TWIA, FAIR Plan, and Farm Mutual Insurers)

Statewide Central Texas

Inflation-Adjusted Avg. Loss per Windstorm Claim, 2000-2015* Inflation-Adjusted Avg. Loss per Windstorm Claim, 2000-2015*

Average Loss per Windstorm Claim

Average Loss per Windstorm Claim

$18,000 $18,000

$15,000 $15,000

$12,000 $12,000

$9,000 $9,000

$6,000 $6,000

$3,000 $3,000

$- $-

Wind (Infl. Adj.) Wind (Actual) Wind (Infl. Adj.) Wind (Actual)
Best Fit: Growth Rate 1.9% Best Fit (Actual): Growth Rate 6.4% Best Fit (Infl. Adj.): Growth Rate 1.4% Best Fit (Actual): Growth Rate 6.0%

Dallas-Fort Worth Metroplex East Texas

Inflation-Adjusted Avg. Loss per Windstorm Claim, 2000-2015* Inflation-Adjusted Avg. Loss per Windstorm Claim, 2000-2015*
Average Loss per Windstorm Claim

Average Loss per Windstorm Claim

$18,000 $18,000

$15,000 $15,000

$12,000 $12,000

$9,000 $9,000

$6,000 $6,000

$3,000 $3,000

$- $-

Wind (Infl. Adj.) Wind (Actual) Wind (Infl. Adj.) Wind (Actual)
Best Fit (Infl. Adj.): Growth Rate 3.0% Best Fit (Actual): Growth Rate 7.2% Best Fit (Infl. Adj.): Growth Rate 0.6% Best Fit (Actual): Growth Rate 5.3%

*Claims and losses are on an occurrence year basis (year of loss) and developed by TDI staff to their estimated ultimate settlement value by cause of loss using historic statewide development patterns.
Claims were adjusted for inflation based on changes in the average insured value for dwellings.

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TEXAS DEPARTMENT OF INSURANCE
 FINAL PRESENTATION TO THE TEXAS LEGISLATURE
Supplemental Exhibit III: TDI Market Data by Region
(All Data Excludes TWIA, FAIR Plan, and Farm Mutual Insurers)

Houston Area and Southeast Texas North Texas (Excluding DFW)

Inflation-Adjusted Avg. Loss per Windstorm Claim, 2000-2015* Inflation-Adjusted Avg. Loss per Windstorm Claim, 2000-2015*
Average Loss per Windstorm Claim

Average Loss per Windstorm Claim

$18,000 $18,000

$15,000 $15,000

$12,000 $12,000

$9,000 $9,000

$6,000 $6,000

$3,000 $3,000

$- $-

Wind (Infl. Adj.) Wind (Actual) Wind (Infl. Adj.) Wind (Actual)
Best Fit (Infl. Adj.): Growth Rate 1.2% Best Fit (Actual): Growth Rate 5.9% Best Fit (Infl. Adj.): Growth Rate 4.2% Best Fit (Actual): Growth Rate 9.3%

Other Seacoast Panhandle

Inflation-Adjusted Avg. Loss per Windstorm Claim, 2000-2015* Inflation-Adjusted Avg. Loss per Windstorm Claim, 2000-2015*
Average Loss per Windstorm Claim

Average Loss per Windstorm Claim

$18,000 $18,000

$15,000 $15,000

$12,000 $12,000

$9,000 $9,000

$6,000 $6,000

$3,000 $3,000

$- $-

Wind (Infl. Adj.) Wind (Actual) Wind (Infl. Adj.) Wind (Actual)
Best Fit (Infl. Adj.): Growth Rate -1.4% Best Fit (Actual): Growth Rate 3.0% Best Fit (Infl. Adj.): Growth Rate 2.6% Best Fit (Actual): Growth Rate 7.4%

*Claims and losses are on an occurrence year basis (year of loss) and developed by TDI staff to their estimated ultimate settlement value by cause of loss using historic statewide development patterns.
Claims were adjusted for inflation based on changes in the average insured value for dwellings.
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TEXAS DEPARTMENT OF INSURANCE
 FINAL PRESENTATION TO THE TEXAS LEGISLATURE
Supplemental Exhibit III: TDI Market Data by Region
(All Data Excludes TWIA, FAIR Plan, and Farm Mutual Insurers)

South Texas Southwest Texas

Inflation-Adjusted Avg. Loss per Windstorm Claim, 2000-2015* Inflation-Adjusted Avg. Loss per Windstorm Claim, 2000-2015*
Average Loss per Windstorm Claim

Average Loss per Windstorm Claim

$18,000 $18,000

$15,000 $15,000

$12,000 $12,000

$9,000 $9,000

$6,000 $6,000

$3,000 $3,000

$- $-

Wind (Infl. Adj.) Wind (Actual) Wind (Infl. Adj.) Wind (Actual)
Best Fit (Infl. Adj.): Growth Rate 4.7% Best Fit (Actual): Growth Rate 9.0% Best Fit (Infl. Adj.): Growth Rate 7.0% Best Fit (Actual): Growth Rate 11.2%

West Texas
Inflation-Adjusted Avg. Loss per Windstorm Claim, 2000-2015*
Average Loss per Windstorm Claim

$18,000

$15,000

$12,000

$9,000

$6,000

$3,000

$-

Wind (Infl. Adj.) Wind (Actual)

Best Fit (Infl. Adj.): Growth Rate 0.8% Best Fit (Actual): Growth Rate 5.7%

*Claims and losses are on an occurrence year basis (year of loss) and developed by TDI staff to their estimated ultimate settlement value by cause of loss using historic statewide development patterns.
Claims were adjusted for inflation based on changes in the average insured value for dwellings.
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TEXAS DEPARTMENT OF INSURANCE