Though an analysis found rates at Texas’ insurer of last resort to be about 20% inadequate, its board on Tuesday did not come to an agreement to file for any rate increases.
The board of the Texas Windstorm Insurance Association (TWIA) voted 5-4 on a recommendation by its Actuarial & Underwriting Committee to file rate increases for 2024 of 5% for residential properties and 8% for commercial policies. The vote, TWIA said, did not meet a statutory requirement that rate increases get a two-thirds vote.
Related: TWIA Finalizes Funding for 2023 Storm Season
Therefore, TWIA will file a 0% rate change for its annually required filing with state insurance regulators.
The actuarial staff at TWIA found the association’s rates to be inadequate by 20% for residential and 22% for commercial coverage.
At the meeting the board also:
- Directed staff to file for no changes to the Association’s maximum liability limits with TDI.
- Approved the staff recommendation to continue the contract with Aon for catastrophe modeling services with another Request For Proposal (RFP) process to take place in
- Received an update on a project to study agent commissions.
- Directed staff to notify the Texas Comptroller of Public Accounts that the entire Catastrophe Reserve Trust Fund balance be kept available to fund the payment of insured losses.
- Approved the engagement of Calhoun, Thomson + Matza for auditing/accounting services for 2024 and authorized other non-auditing services.
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