The Texas Windstorm Insurance Association has posted its 2021 Rate Adequacy Analysis for public review.
The analysis indicates that TWIA’s current rates are inadequate by 39% for residential coverage and 46% for commercial coverage.
TWIA’s analysis consists of several PDF documents and Microsoft Excel spreadsheets. A complete 2021 TWIA Rate Adequacy Analysis is available to the public, as is a summary of the analysis by the Rate Adequacy Presentation to the Committee.
State law requires TWIA to post a rate adequacy analysis on its website 14 days prior to the date of TWIA’s Board of Directors rate filing vote, including for the board’s annual required rate filing decision.
The rate adequacy analysis is produced by TWIA’s actuarial staff. It represents an estimate of the amount of premium the association needs to cover its projected expenses – including losses and loss adjusting expenses, operating expenses, debt service and reinsurance costs – for the following year.
TWIA’s analysis is an estimate based on traditional actuarial techniques, professional judgment and statistical modeling of future weather events.
The analysis will be reviewed by TWIA’s Actuarial & Underwriting Committee in an upcoming meeting on July 21. In addition to the analysis performed by TWIA’s designated actuary, TWIA staff’s presentation to the Committee will include information on the impact of using assumptions adopted by independent actuarial firm Willis Towers Watson in its report to the association last year, which may result in a different rate indication. The Committee is expected to discuss the staff’s rate analysis and consider whether to recommend a change in rates to TWIA’s board.
The TWIA Board will also consider the analysis, the committee’s recommendation, and stakeholder feedback in its deliberations and action regarding the association’s annual required rate filing. That decision will take place at the next meeting of the TWIA Board on Aug. 3.
Stakeholders will be invited to provide public comments about TWIA’s 2021 Rate Adequacy Analysis for consideration by the committee and board at their July and August meetings. Information about the meetings and how to provide written and verbal comment will be posted to TWIA’s website.
Was this article valuable?
Here are more articles you may enjoy.
California Sees Two More Property Insurers Withdraw From Market 
Zuckerberg Avoids Personal Liability in Meta Addiction Suits 
Grand Jury Indicts ‘Hole in Won’ Owner on Prize Insurance Fraud Charges 
USAA to Lay Off 220 Employees 
