TWIA board approves 0% annual rate filing

08/06/2019

Earlier today, the Texas Windstorm Insurance Association board approved, by a 5-3 vote, a 0% rate filing for residential and commercial policyholders.

The annual rate filing included additional language saying the board would reexamine rates "at a later date", with the expectation that the impacts of TWIA legislation will be better understood at that time. 

A prior motion for a zero percent rate filing failed on a 4-4 tie. 

After the rate filing motion passed, a second motion was made to put some time certainty to the prior motion, including convening the actuarial underwriting committee, with discussion about changing the makeup of that committee, and having a called board meeting in October to revisit the issue of rates. That motion passed unanimously.

Last week, a group of Texas legislators sent a letter to TWIA urging against any rate increase. A copy of that letter can be found here. ICT submitted comments to TWIA recommending a 5% rate increase. In the letter, ICT referenced TWIA's actuarial analysis that showed a 41.7% inadequacy for residential and 50% inadequacy for commercial policies. All of these letters/comments may be viewed on the TWIA/FAIR Plan page at insurancecouncil.org (member login required).
 
We will distribute a more complete recap of the TWIA meeting Wednesday.

 

ICT Events



Industry Calendar

Aug3

TFPA Governing Committee Meeting
Tremont House, Galveston

Aug4

TWIA Board of Directors Meeting
Tremont House, Galveston

Dec7

TFPA Governing Committee Meeting
Omni Hotel, Corpus Christi

Dec8

TWIA Board of Directors Meeting
Omni Hotel, Corpus Christi