TWIA board approves 0% annual rate filing
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.