Essential Information:
- TWIA is required to submit a rate filing to the Texas Department of Insurance by August 15 each year.
- All rate increases are subject to review and approval by the Insurance Commissioner.
- TWIA accepts public comment on TWIA rates at all Board and Committee meetings.
- More information on TWIA rates is available on TWIA’s website.
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Greetings:
The Texas Windstorm Insurance Association’s (TWIA) annual rate filing consideration process is about to begin.
By law, TWIA must make a rate filing with the Texas Department of Insurance by August 15 each year. TWIA’s Actuarial & Underwriting Committee typically meets in July before the rate filing date to decide on a rate recommendation to TWIA’s Board of Directors. The Board then meets in August to make a decision regarding the filing.
The public is invited to comment in writing, or in person or virtually at the meetings of TWIA’s Actuarial & Underwriting Committee and Board of Directors. Public comment information and meeting agendas will be posted to TWIA’s website before all scheduled meetings.
Laws passed last year:
- Require a two-thirds vote of the Board to approve a rate increase.
- Make all TWIA filings for a rate increase subject to review and approval by the Insurance Commissioner. (Previously, this was the case only for rate increases greater than 5% and in some other circumstances.)
- Prohibit the Board from voting on a proposed rate increase if there is a vacancy on the Board that has existed for at least sixty days at the time the vote is to be taken. (There are currently no vacancies on the Board.)
TIMELINE - Below are key dates in TWIA’s annual rate filing consideration process:
July 1, 2022: TWIA posts an annual Rate Adequacy Analysis to its website for public review. The Rate Adequacy Analysis is a professional estimate by TWIA’s actuarial staff of whether rates are sufficient to cover the Association’s operating expenses and its expected losses from claims.
July 18, 2022: The Actuarial & Underwriting Committee meets to review the Rate Adequacy Analysis, hear public comment, and vote on a recommendation to the TWIA Board of Directors regarding TWIA’s August 2022 annual rate filing.
August 2, 2022: TWIA’s Board of Directors meets to hear the recommendation from the Actuarial & Underwriting Committee and public comment and vote to direct staff regarding TWIA’s August 2022 annual rate filing.
August 15, 2022: Statutory deadline for TWIA staff to make the annual rate filing with the Texas Department of Insurance.
October 15, 2022: Statutory deadline for approval or disapproval of a TWIA rate filing by the Commissioner of Insurance.
More information on TWIA Board and Committee meeting dates and how to provide public comment is available on TWIA's website.
Should you have any questions, please contact me at JArmstrong@twia.org or (512) 637-4031.
Sincerely,
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