I hope that this doesn’t come as a surprise by anyone. While I applaud the fact that there is some mechanism in Texas for an insurer of major perils, like hurricane and other wind-driven exposures, Citizens has the same problem. There is never enough money to pay claims where there is not enough premium collected to cover the exposure. Penny wise and pound foolish, when you build on the high side but insure on the low side. The TWIA has to make do with the market in which it operates, tough to do when the storm of the century hits more than once a century….
I hope that this doesn’t come as a surprise by anyone. While I applaud the fact that there is some mechanism in Texas for an insurer of major perils, like hurricane and other wind-driven exposures, Citizens has the same problem. There is never enough money to pay claims where there is not enough premium collected to cover the exposure. Penny wise and pound foolish, when you build on the high side but insure on the low side. The TWIA has to make do with the market in which it operates, tough to do when the storm of the century hits more than once a century….