Chair’s Message to Members
Texas Lawyers’ Insurance Exchange celebrated its 37th anniversary in May 2016, and I am happy to report the past year has been another great year for TLIE and its insureds. TLIE was founded in 1979 as the result of a crisis in the commercial insurance market during which Texas lawyers found it hard to buy professional liability coverage at any price. TLIE was founded as a member-owned company to serve as a reliable source of legal malpractice insurance to Texas lawyers during all insurance market conditions. TLIE has served that mission successfully for over 37 years.
One of the main reasons for TLIE’s very strong performance in recent years is unusually low claim frequency. TLIE’s members just aren’t being sued with the same frequency as during previous periods. As a result, last year we were able to return $4,750,000 in policyholder distributions to our member insureds, bringing the total amount returned to members over the past 20 consecutive years to $46,300,000.
At the same time, we were able to increase TLIE’s financial strength by adding to policyholder surplus. Based on TLIE’s increasing financial strength, we were able to further reduce our dependence on reinsurance which we expect to help keep TLIE’s premiums competitive with commercial carriers. The insurance company rating agency, A.M. Best, again recognized TLIE’s financial strength with a rating of “A” (Excellent).
TLIE’s success is no accident. We follow strict underwriting guidelines and maintain prudent claim reserves. We are committed to providing high quality service to our insureds, including a broad range of risk management services. We have a unique understanding of the judicial climate and how law is practiced in Texas. All of TLIE’s officers are licensed Texas attorneys. TLIE values highly the relationships with our members, and we believe our responsibilities extend beyond collecting premiums and paying claims to serving as a resource for education and assistance both before and after problems arise.
Thank you for your support of TLIE. We look forward to serving you for years to come.
Note: Original message updated to include 2016 distribution.
