TWIA board approves $106.8M member assessment and 10% rate increase
Earlier today, the Texas Windstorm Insurance Association (TWIA) board unanimously approved an additional Class 1 member assessment of $106.8 million for Hurricane Harvey losses. This is in addition to the $175 million the TWIA board approved in May. Overall, TWIA staff estimates total losses from Hurricane Harvey at $1.61 billion.
After lengthy discussion, and a vote to reject a motion for no rate increase, the TWIA board, by a 5-4 vote, approved a 10% rate increase for residential and commercial policyholders. The TWIA rate increase now goes to TDI for review, and TDI can either approve or disapprove the rate request. On Monday, a group of Texas legislators sent a letter to TWIA and TDI, urging both to reject any rate increase. A copy of the letter can be found here.
Following the final vote, board member Mike Gerik recommended that TWIA staff take steps to assist policyholders and TWIA agents by researching a number of issues including territorial rating, deductibles, and TWIA’s renewal process.
We will distribute a more complete recap of the TWIA meeting tomorrow.