This morning, the TWIA board of directors approved a $175 million member assessment resulting from losses caused by Hurricane Harvey.
TWIA staff estimates total losses from Hurricane Harvey at $1.61 billion, up from the estimate presented at the February board meeting of $1.44 billion. Staff estimates a total assessment amount totaling $321 million. The TWIA board will revisit the question at their July 31st meeting in Galveston and consider whether to take any further action, which may include an additional member assessment.
TWIA board member, Mike Gerik, of Texas Farm Bureau, made the motion for a $175 million member assessment, instead of the full $321 million staff estimate, to avoid assessing member companies any more than necessary to cover claim payments. After a lengthy discussion covering the causes of the increased loss estimate amount, the board unanimously approved the motion for a $175 million member assessment.
The assessment must be approved by the Commissioner. TWIA staff estimates the assessment will be delivered to companies in early to mid June, with payment due 30 days from receipt of the invoice.
A full report on the TWIA meeting, as well as a recap of yesterday's FAIR Plan meeting, will be distributed to members and available in the member section on insurancecouncil.org shortly.