Agents can expect increased proactive communication and information aimed at educating the agent community on what the TWIA Depopulation Programs are, how they will operate, what they mean for agents and policyholders, and how we will manage the process together.

It may be complex, but that doesn’t mean it has to be difficult. Throughout the depopulation process, TWIA is committed to efficiently executing its mission of providing Texans with essential property insurance coverage for eligible properties when no one else will.

What are the two New Depopulation Programs?

SB 900 authorized the creation of two new depopulation programs to assist TWIA policyholders in finding coverage in the private market: a Voluntary Market Depopulation Program and an Assumption Reinsurance Depopulation Program. TDI rules governing these programs became effective December 22, 2015.

Will the Voluntary Coastal Windstorm Insurance Portal continue?

Following TWIA’s 2014 launch of the Voluntary Coastal Windstorm Insurance Portal (Portal), 16 companies were provided access to the portal data. One carrier, United Property & Casualty Insurance Company (UPC), identified almost 60,000 policies and began making offers of coverage in April 2015. UPC is providing regular reports of the offers of coverage made and accepted. As of December 31, 2015, they have had 4,387 acceptances. Access to the Portal was revoked in December 2015 pursuant to TDI rules.

What is (one of the two new programs) the Voluntary Market Depopulation Program?

The Voluntary Market Depopulation Program will replace the Voluntary Coastal Windstorm Insurance Portal and will function in a similar manner. Participating carriers will receive access to TWIA policyholder data after signing a Non-Disclosure and Terms of Use Agreement and, after meeting specific requirements of the Program, approach the agent of record to make offers of coverage. Acceptance of any offers is strictly voluntary and no changes will take place unless the agent and policyholder affirmatively accept the participating carrier’s offer. The new Voluntary Market Depopulation Program has been filed with the Texas Department of Insurance and will become available to participating carriers upon TDI approval.

What is (the other of the two new programs) the Assumption Reinsurance Depopulation Program?

The Assumption Reinsurance Depopulation Program is similar in concept to the successful take-out programs in Florida and Louisiana. Under the program, interested carriers will be approved by TDI and will select the TWIA policies they are interested in taking out. Agents will have the opportunity to review and approve or reject any offers, and policyholders will have the ability to opt out of the depopulation process. Policies on which offers have been made and where the policyholder does not opt out will be assumed by the participating carrier.