Greetings:
The Texas Windstorm Insurance Association’s Actuarial & Underwriting Committee met on July 14. The Committee voted to recommend that the TWIA Board of Directors instruct Association staff to make a rate filing with the Texas Department of Insurance requesting no change in residential or commercial rates when it meets on August 5.
The recommendation, on a 5 to 2 vote, came after the Committee reviewed the 2025 Rate Adequacy Analysis prepared by the Association’s actuarial staff. The analysis indicates that TWIA rates are inadequate by 3% for residential coverage and 5% for commercial coverage. The 2025 Analysis shows a significant improvement in TWIA’s longtime rate inadequacy. This is attributed directly to legislation passed in the recently concluded session of the Texas Legislature, which reduced TWIA’s expected costs related to reinsurance and premium & maintenance taxes.
The Committee also received written comments and heard public comment from stakeholders, including elected officials and other coastal community members.
The TWIA Board will consider the Committee’s recommendation, the rate adequacy analysis, and stakeholder feedback when voting to decide the content of the Association’s annual required rate filing which is required to be made on or before August 15 with the Texas Department of Insurance (TDI).
State law also requires that:
- The Board may not vote on a rate increase if there is a Board vacancy and the vacancy has existed for at least 60 days when the vote is taken. (Currently, there is one vacancy on the Board for a Non Seacoast Territory Representative.)
- Two-thirds of the Board must vote to approve the filing of a rate increase.
- All TWIA filings seeking rate increases are subject to review and approval by the Texas Insurance Commissioner.
More information and a timeline on TWIA’s annual rate filing process is available here. Anyone wishing to provide public comment on TWIA rates or any other issue before the Board may email PublicComment@twia.org. TWIA will publish more information on the August 5 Board meeting and how individuals can participate in the meeting later this month.
The meeting materials and archived recording for the Committee meeting are available on our Meeting Library page.
Should you have any questions, please contact me at DDurden@twia.org or (512) 505-2255.
Sincerely,
David Durden
General Manager
Texas Windstorm Insurance Association
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