TWIA to File for 10% Increase in Rates 

The Texas Windstorm Insurance Association Board of Directors met on August 6 and voted to direct staff to file a rate increase of 10% for residential and commercial policies in its required annual filing with the Texas Department of Insurance (TDI). The filing, which was approved by a vote of 6 to 3, meeting the statutory two-thirds threshold, must be made by August 15 and is subject to approval by the Texas Insurance Commissioner. If approved, the new rates are expected to go into effect for policies issued or renewed starting January 1, 2025. 

The vote followed the Board receiving a recommendation from TWIA’s Actuarial & Underwriting Committee for a 10% rate increase. The Board also heard public comments from stakeholders including elected officials and other coastal community members.  

TWIA’s 2024 Rate Adequacy Analysis, prepared by the Association’s actuarial staff, indicates that TWIA’s current rates are inadequate by 38% for residential coverage and 45% for commercial coverage. 

Hurricane Beryl Update 

Board members received departmental updates on the Association’s response to Hurricane Beryl. As of August 5, TWIA has received more than 27,000 claims. To date, the Association has made payment on more than 10,000 claims for a total of about $120 million.  

TWIA’s actuarial team provided a preliminary estimate of losses from Hurricane Beryl claims at $400 million, including adjusting costs. This estimate is subject to significant change as claims from this storm continue to be received and adjusted. TWIA staff expects that combined with heavy spring storms, claims from Hurricane Beryl will require the Association to draw down a substantial portion, if not all, of TWIA’s Catastrophe Reserve Trust Fund, which stands at $451 million as of the end of the second quarter of this year. 

Legislative Recommendations 

The Board approved a draft Biennial Report to the Texas Legislature. The report contains the Board’s legislative recommendations including proposals on FORTIFIED home construction, premium and maintenance tax, premium financing, multidistrict litigation, and the use of premiums to pay claims in non-catastrophe years, as well as options related to TWIA catastrophe funding for the Legislature’s consideration.

State law requires that the Biennial Report be submitted to the Texas Legislature, the Insurance Commissioner, and the Sunset Advisory Commission in the year before a legislative session.  

Other Business 

In addition to receiving routine operational updates, the Board also: 

• Directed staff to make a required filing with the Texas Department of Insurance for changes to the maximum liability limits on Association policies.  

• 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 and authorized other non-auditing services. 

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

The meeting materials and archived recording for the Board meeting are available on our Meetings Library page.