The Texas Windstorm Insurance Association Actuarial & Underwriting Committee met Tuesday, July 11 and voted to recommend increasing rates for residential policies by 5% and commercial policies by 8% for 2024.
The TWIA Board of Directors will vote to approve a rate increase when it meets on August 8.
The committee voted 3 to 1 in favor of rate increases after reviewing the association’s 2023 rate adequacy analysis. The analysis indicated that 2023 residential rates are inadequate by 20% and commercial by 22%.
Jim Murphy, chief actuary and vice president of enterprise analytics at TWIA, told the committee Tuesday that the primary driver of increases is market conditions in the reinsurance market as well as exposure growth in the association.
Two-thirds of the TWIA Board of Directors must vote to approve a rate increase, and TWIA must make a rate filing with the Texas Department of Insurance by August 15 each year. Any rate increase is subject to approval by the insurance commissioner.
October 15 is the statutory deadline for approval or disapproval of a TWIA rate filing by the insurance commissioner.
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