Greetings:
The Texas Windstorm Insurance Association (TWIA) Board of Directors held an interim meeting on March 22. The Board directed Association staff to secure total funding for the 2022 hurricane season in the amount of $4.236 billion through a combination of catastrophe reinsurance (cat bonds and/or traditional reinsurance) and the funding provided in TWIA’s enabling statute.
The Board received a presentation from Aon on catastrophe model results to help them establish the probable maximum loss for the Association for a hurricane season with a probability of one in 100 (1:100 PML). The Board considered estimates produced by four different catastrophe models, assigning equal weight to each to set the 1:100 PML at $4.236 billion for the 2022 hurricane season.
The Board also received a presentation from reinsurance broker Gallagher Re on reinsurance options to meet the Association’s required funding level. The Board directed TWIA staff to place a combination of cat bonds and/or traditional reinsurance in an aggregate amount totaling $2.036 billion (in excess of $2.2 billion in statutory funding) to bring the 2022 season’s catastrophe funding to $4.236 billion.
The meeting materials and archived recording for the Board meeting are available on our Archived Meetings page.
Should you have any questions, please contact me at JArmstrong@twia.org or (512) 637-4031.
Sincerely,
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