Texas Windstorm Insurer Highlights Improvements Made Since 2011

June 5, 2015

Texas windstorm insurer of last resort for coastal counties has released its annual report, which it says shows the practices and procedures of the organization have improved greatly since 2011.

That was the year the Texas Department of Insurance placed Texas Windstorm Insurance Association (TWIA) under administrative oversight.

TWIA took a beating from Hurricane Ike in 2008 and subsequent litigation.Its surplus was depleted and the organization was severely criticized for its claims handling procedures.

TWIA reports that notable improvements since that time include:

  • Secured the highest level of funding since 2009 with $4.88 billion in total funds available to pay claims, sufficient to cover a 100-year season
  • Contributed over $260 million to the Catastrophe Reserve Trust Fund (CRTF) as a result of 2014 operations, bringing the CRTF total to more than $480 million for the 2015 storm season – the highest balance since the CRTF was established
  • Implemented Policy Center, a new policy administration system, reducing the average time for an agent to receive a policy
  • Launched a new TWIA.org website that dramatically improved the user-experience and supports our continued efforts to operate transparently through open communications with TWIA stakeholders
  • Enhanced the Association’s enterprise Catastrophic (CAT) Incident Response Plan to be more streamlined and aligned with the National Incident Management System while working with coastal communities’ emergency management officials to review the plan and coordinate response efforts.

TWIA was established by the Texas Legislature in 1971 in response to regional market conditions following Hurricane Celia in August 1970.

The association is required to report annually to the Governor, Lieutenant Governor, Speaker of the House of Representatives, the Legislative Oversight Board, and the Commissioner of Insurance.

Related:

Topics Catastrophe Carriers Natural Disasters Texas Windstorm

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