The Actuarial and Underwriting Committee of Texas’ insurer of last resort for wind and hail coverage for properties in the state’s coastal counties voted on July 21 to recommend a 0% rate increase to its board of directors.
The Texas Windstorm Insurance Association’s board is expected to take up the matter at its Aug. 4 quarterly meeting. The association is required to make a rate filing with the Texas Department of Insurance by Aug. 15.
While the committee is recommending no rate increase for both commercial and residential wind and hail insurance policies at this time, it may revisit the issue of TWIA rates later this year if directed by the board.
At its July 21 meeting, the committee reviewed the 2020 Rate Adequacy Analysis prepared by the association’s actuarial staff. The analysis indicates that TWIA’s current rates are inadequate by 44 percent for residential coverage and 49 percent for commercial coverage.
The committee also voted to advise the TWIA board that, due to pandemic-related delays, a review of TWIA’s rate adequacy should continue later this year. A continued review would take into account the independent study currently underway of TWIA’s rate adequacy and use of hurricane modeling in estimating potential losses in its rate-setting process. The study is being performed by consulting firm Willis Towers Watson.
Members of the public may comment on the 2020 Rate Adequacy Analysis via email to PublicComment@TWIA.org. Emailed comments received by Noon CT on Friday, July 31 will be compiled and provided to the TWIA board of directors prior to the August 4 meeting.
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