TWIA Committee Recommends 10% Rate Increase for 2025 Policies

Published on: July 15, 2024

TWIA’s Actuarial & Underwriting Committee met on July 15 and voted to recommend that the TWIA Board of Directors approve a rate filing to increase rates by 10% for 2025 residential policies and by 10% for 2025 commercial policies when it meets on August 6. 

The recommendation, on a 5 to 1 vote, came after the Committee reviewed the 2024 Rate Adequacy Analysis prepared by the Association’s actuarial staff. The analysis indicates that TWIA rates are inadequate by 38% for residential coverage and 45% for commercial coverage. The Committee also heard public comment from stakeholders, including elected officials and other coastal community members. 

At its August meeting, the TWIA Board will consider the Committee’s recommendation, the rate adequacy analysis, and stakeholder feedback when voting to decide the content of the Association’s annual required rate filing with the Texas Department of Insurance (TDI).  

Timeline of TWIA’s 2023 Annual Rate Filing Consideration Process: 

  • July 1, 2024: TWIA posts an annual Rate Adequacy Analysis to its website for public review. The Rate Adequacy Analysis is an estimate, prepared by TWIA’s actuarial staff, of whether rates are sufficient to cover the Association’s operating expenses and its expected losses from claims.
  • July 15, 2024: The Actuarial & Underwriting Committee meets to review the Rate Adequacy Analysis, hear public comment, and develop a recommendation to the TWIA Board of Directors regarding TWIA’s August 2024 annual rate filing.
  • August 6, 2024: TWIA’s Board of Directors meets to hear the recommendation from the Actuarial & Underwriting Committee and public comment and vote to direct staff regarding TWIA’s August 2024 annual rate filing. 
  • August 15, 2024: Statutory deadline for TWIA staff to make the annual rate filing with the Texas Department of Insurance.
  • October 15, 2024: Statutory deadline for approval or disapproval of a TWIA rate filing by the Commissioner of Insurance.

Anyone wishing to provide public comment on TWIA rates or any other issue before the Board may email PublicComment@twia.org. TWIA will publish more information on the August 6 Board meeting and how individuals can participate in the meeting later this month. 

Members of the media with questions about the Committee meeting, please email MediaRelations@TWIA.org. 

The meeting materials and archived recording for the Committee meeting are available on our Meeting Library page.