July 17 was the last day the Texas Windstorm Insurance Association’s (TWIA) Actuarial & Underwriting Committee accepted comments on its annual rate filing process, which officially begins on July 21 when the committee meets to to review the annual Rate Adequacy Analysis prepared by the association’s actuarial staff. TWIA will continue to accept public comment addressed to the full board of directors through July 31.
The committee on July 21 will review the Rate Adequacy Analysis and consider whether to recommend a change in rates to TWIA’s board of directors. The committee will also receive a presentation on the North Atlantic Hurricane Model from Risk Management Solutions Inc. (RMS).
At its June 30 meeting, the committee selected Willis Towers Watson to perform an independent study of TWIA’s rate adequacy and use of hurricane modeling in estimating potential losses in its rate-setting process. Willis Towers Watson will provide a status update on its rate and model analysis at the July 21 meeting.
TWIA is required by statute to make a rate filing with the Texas Department of Insurance by August 15 each year. The annual rate filing is subject, in certain circumstances, to review and approval by the insurance commissioner. More information on TWIA rates and the rate filing process is available on TWIA’s website.
Statute also requires that the association make its rate adequacy analysis publicly available on its website at least 14 days before the date the board of directors votes on the submission of a proposed rate filing, based on the analysis, to the Department of Insurance.
TWIA’s 2020 Rate Adequacy Analysis will be posted to TWIA’s website on July 21. The TWIA Board of Directors will meet August 4, 2020.
Timeline of TWIA’s 2020 Annual Rate Filing Consideration Process
- July 17, 2020: Noon deadline for written public comment to the Actuarial & Underwriting Committee related to the meeting agenda.
- July 21, 2020: TWIA to post Rate Adequacy Analysis to its website for public review. Actuarial & Underwriting Committee meets to review Rate Adequacy Analysis and vote on a recommendation to the TWIA Board of Directors regarding TWIA’s August 2020 annual rate filing.
- July 31, 2020: Noon deadline for written public comment to the TWIA Board of Directors related to the Association’s August 2020 rate filing.
- August 4, 2020: TWIA Board of Directors meets to hear recommendation from the Actuarial & Underwriting Committee and public comment on the 2020 rate adequacy analysis and vote to direct staff regarding TWIA’s August 2020 annual rate filing.
- August 15, 2020: Statutory deadline for TWIA staff to make annual rate filing with the Texas Department of Insurance.
- October 15, 2020: Deadline for approval or disapproval of a TWIA rate filing by the Commissioner of Insurance, in some circumstances.
The committee will meet via GoToWebinar on Tuesday, July 21 at 1:30 p.m. CT. The meeting will also be livestreamed on YouTube. The agenda for the meeting can be found here.
Source: TWIA
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