Texas Windstorm Board Considers 10% Increase in Residential, Commercial Insurance Policies

Austin — The Texas Windstorm Insurance Association Actuarial and Underwriting Committee met on July 15 and voted to recommend that the TWIA Board of Directors approve a rate filing to increase rates by 10% for 2025 residential policies and 10% for 2025 commercial policies at its Aug. 6 meeting.

The recommendation, adopted by a vote of 5-1, came after the committee reviewed the 2024 rate adequacy analysis prepared by the association’s actuarial staff. The analysis, according to TWIA, indicates that TWIA rates are inadequate by 38% for residential coverage and 45% for commercial coverage. The committee also heard public comments from stakeholders, including elected officials and other members of coastal communities.

At its August meeting, the TWIA Board of Directors will consider the committee’s recommendation, rate adequacy analysis and stakeholder feedback when voting to decide on the content of TWIA’s required annual rate filing with the Texas Department of Insurance.

TWIA 2023 Annual Rate Application Review Process Schedule:

July 1, 2024: TWIA publishes an annual Rate Adequacy Analysis on its website for public review. The Rate Adequacy Analysis is an estimate, prepared by TWIA actuarial staff, of the sufficiency of rates to cover the Association’s operating expenses and its expected losses from claims.

July 15, 2024: The Actuarial and Underwriting Committee meets to review the rate adequacy analysis, hear public comments, and develop a recommendation to the TWIA Board of Directors regarding the filing of TWIA’s August 2024 annual rates.

August 6, 2024: The TWIA Board of Directors meets to hear the recommendation of the Actuarial and Underwriting Committee and public comments and vote to provide direction to staff regarding the filing of TWIA’s August 2024 annual rates.

August 15, 2024: Legal deadline for TWIA staff to complete annual rate filings with the Texas Department of Insurance.

October 15, 2024: Legal deadline for approval or rejection of a TWIA rate filing by the Insurance Commissioner.

Anyone wishing to provide public comment on TWIA’s rates or any other issue before the Council may send an email to [email protected]. TWIA will post more information about the August 6 Council meeting and how individuals can participate in the meeting later this month.

Meeting documents and the archived recording of the Committee meeting are available on the Meetings Library page.