The Texas Department of Insurance (TDI) is the state agency charged with regulating the insurance industry, enforcing the Texas Insurance Code, and protecting consumers through oversight, education, and enforcement. It licenses insurance companies, agents, and adjusters, and monitors financial solvency to ensure that insurers can meet their obligations to policyholders. TDI also operates a consumer help line and online complaint system, providing Texans with information about insurance coverage and assistance in resolving disputes with insurers or agents.
The agency’s Division of Workers’ Compensation (DWC) administers and enforces the Texas Workers’ Compensation Act and related provisions of the Texas Labor Code. The division ensures that employers and insurance carriers handle injury claims properly, that injured employees receive medical and income benefits, and that disputes are resolved through mediation or formal hearings. The DWC does not itself pay benefits but acts as the regulatory body overseeing the system’s integrity and fairness.
TDI also houses the State Fire Marshal’s Office, which investigates fires, enforces fire safety standards, and promotes prevention through public education and inspections. In addition, it provides administrative support to the Office of Injured Employee Counsel, an independent state agency that advocates for workers in compensation disputes.
The department’s Fraud Unit investigates fraudulent insurance acts, including claimant fraud, workers’ compensation fraud, and insurance agent or company misconduct. The unit employs commissioned peace officers, attorneys, and investigators, and works with local prosecutors—some of whom are embedded in district attorney’s offices in major Texas counties—to pursue criminal cases and deter fraud statewide.
TDI is headed by a Commissioner of Insurance, appointed by the governor with the advice and consent of the Texas Senate for a two-year term. The Commissioner of Workers’ Compensation likewise serves a two-year term as the head of the division.
Originally established in 1876 as the Department of Insurance, Statistics and History, the agency once oversaw data collection and historical preservation before those functions were spun off to other entities. Over time, its focus narrowed to insurance regulation and worker protection, reflecting the state’s growth and the increasing complexity of Texas’s financial and labor systems.
