Texas regulators have denied a request for a 5% rate increase by the state’s insurer of last resort for wind and hail for properties along the Texas coast.
The Texas Department of Insurance (TDI) has rejected the Texas Windstorm Insurance Association’s filing for a 5% rate increase on residential and commercial policies. TWIA’s board of directors voted to make the filing at its Dec. 8, 2020 meeting.
In its rejection letter, TDI states that pursuant to Sec. 2210.3511 of the Texas Insurance Code TWIA should have made the rate adequacy analysis performed by Willis Towers Watson (WTW) and presented to the board at the Dec. 8 meeting available to the public on its website for 14 days before the board voted on the rate filing.
TDI views the WTW analysis to be part of the association’s rate analysis. That analysis found TWIA rates to be inadequate by 26 percent for residential policies and 44 percent for commercial policies.
“TWIA had not considered the WTW analysis as the Association’s analysis. However, TWIA will defer to the Department’s interpretation of this statute whenever rate filings are considered by the Board in the future,” TWIA Vice President of Communications & Legislative Affairs Jennifer Armstrong said in a media release.
It is unknown at this time whether the TWIA board will consider re-filing the rate increase. The board is next scheduled to meet on Feb. 23, 2021.
Source: TWIA
Topics Catastrophe Carriers Natural Disasters Texas Windstorm Pricing Trends
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