Greetings:
TWIA’s 2024 Rate Adequacy Analysis indicates that TWIA’s current rates are inadequate by 38 percent for residential coverage and 45 percent for commercial coverage.
The Rate Adequacy Analysis is an estimate prepared by TWIA’s actuarial staff of whether rates are sufficient to cover the Association’s operating expenses and its expected losses from claims.
The 2024 Analysis shows that TWIA’s rates are less adequate than a year ago. This can be attributed to an increase in the Association’s policy count, inflation in the cost of labor and materials for construction, and the need for more reinsurance coverage.
| YEAR |
RESIDENTIAL RATE INADEQUACY |
COMMERCIAL RATE INADEQUACY |
| 2020 |
44% |
49% |
| 2021 |
39% |
46% |
| 2022 |
15% |
11% |
| 2023 |
20% |
22% |
| 2024 |
38% |
45% |
TWIA’s Rate Adequacy Analysis consists of several PDF documents and Microsoft Excel spreadsheets. The complete 2024 TWIA Rate Adequacy Analysis is now available on TWIA’s website.
- State law requires TWIA to post a rate adequacy analysis on its website 14 days prior to the date the TWIA Board of Directors votes on a rate filing.
- TWIA must make a rate filing with the Texas Department of Insurance by August 15 each year.
- TWIA’s Board will meet August 6, 2024, to make a decision regarding the filing.
Previous TWIA Rate Adequacy Analyses can be found in the Financials & Reports section of TWIA’s website.
Providing Public Comment on the Rate Adequacy Analysis
There are two upcoming opportunities to provide public comment on TWIA’s Rate Adequacy Analysis:
- TWIA’s Actuarial & Underwriting Committee will meet on July 15 to review the Analysis and formulate a rate filing recommendation for presentation to the TWIA Board.
- The TWIA Board will meet August 6 to consider the Analysis, the Committee’s recommendation, and stakeholder feedback prior to its annual required rate filing decision.
Stakeholders are invited to provide public comment verbally or in writing about TWIA’s 2024 Rate Adequacy Analysis at both meetings. More information on TWIA Board and Committee meeting dates and how to provide public comment is available on TWIA’s website.
As a reminder, this message and all TWIA Legislative Updates are archived at www.TWIA.org/legislative. TWIA is now on Twitter (X)! Make sure to follow us @TWIA_TX for information on board meetings, the rate filing process, catastrophe response, and other news.
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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