The Texas Windstorm Insurance Association (TWIA) Actuarial & Underwriting Committee met on July 18 and recommended that the TWIA Board of Directors vote to make a rate filing with no change in residential or commercial rates when it meets on Aug. 2.
The recommendation came after the committee reviewed the 2022 Rate Adequacy Analysis prepared by TWIA’s actuarial staff. The analysis found that TWIA rates are inadequate by 15% for residential and 11% for commercial coverage. The committee also heard public comments from stakeholders, including elected officials and other coastal community members.
The TWIA board will consider the committee’s recommendation, the analysis and stakeholder feedback when voting to decide the amount of the annual required rate filing with the Texas Department of Insurance (TDI). Any TWIA filing for an increase in rates requires the approval of the state’s Insurance Commissioner to go into effect.
The committee also reviewed information on wind mitigation credits and other adjustments, including opening protection, roof age, and other characteristics. The committee voted to recommend that the TWIA board expand eligibility for an existing 10% premium credit. Currently, residential properties constructed prior to Sept. 1, 1998, or Feb. 1, 2003, as applicable, with all exterior openings compliant with current building codes – including windows, doors, and any other openings – are eligible for the credit. The committee is recommending that eligibility for the credit be expanded to any properties with all windows compliant with current building codes. The committee also directed staff to continue research on potential premium impacts based on roof characteristics.