The Texas Windstorm Insurance Association’s (TWIA) Board of Directors will meet via Zoom at 9 a.m. Aug. 4. They are expected to consider the Association’s statutorily required annual rate filing, among other issues. The meeting agenda is available on TWIA’s website.
Members of the public are invited to provide comment on TWIA’s required rate filing during the designated public comment portion of the meeting or via email at PublicComment@TWIA.org. Emailed comments received by Noon Friday, July 31 will be compiled and provided to the TWIA Board prior to the Aug. 4 meeting.
TWIA is required by statute to make a rate filing with the Texas Department of Insurance by August 15 each year. The annual rate filing is subject, in certain circumstances, to review and approval by the Commissioner of Insurance.
The Board’s Actuarial & Underwriting Committee met on July 21 and voted to recommend that the Board direct TWIA staff to file a 0% rate change for commercial and residential wind and hail insurance policies. The Committee also voted to advise the Board that, due to pandemic-related delays, it recommends to the Board that the Committee should continue reviewing TWIA’s rate adequacy later this year. This would allow the Committee to consider the independent study currently underway of TWIA’s rate adequacy and use of hurricane modeling in estimating potential losses in its rate-setting process.
Consulting firm Willis Towers Watson, which will provide a status update on their work at the August 4 meeting, is performing the independent study.
(Note: TWIA’s 2020 Rate Adequacy Analysis, prepared by the Association’s actuarial staff, indicates that TWIA’s current rates are inadequate by 44 percent for residential coverage and 49 percent for commercial coverage.)