Operational Efficiency and Performance


  • Since 1971, TWIA has taken in approximately $6.5 billion in premiums and returned more than $5.8 billion to policyholders in claim payments and claim expenses.
  • TWIA issued approximately 212,000 policies in 2018 with annual premiums of nearly $400 million.
  • There are 36 residual market plans nationwide – 34 use internal staff to manage daily operations.
  • TWIA is the second largest plan and had the ninth-lowest operating expense per policy at $119 in 2017 and 2018.
  • TWIA’s operating expense as a percentage of earned premium was 7% compared to an average of 13% for Texas carriers.

Operational Costs

As of September 30, 2019, TWIA policies in-force numbered 191,580 with insured building and contents coverage totaling $55.8 billion. 2018 written premiums were $397.3 million. TWIA’s costs associated with policy issuance, billing, and other operations of the Association are 7% of the premiums collected. This is less than the average cost for other insurance companies in Texas (13%).


  • TWIA’s management team has over 200 years of combined insurance industry experience, including experience with national carriers, Texas-domiciled carriers, other residual markets, and the Texas Department of Insurance.
  • TWIA controllable expenses have been below budget for eight consecutive years.
  • Audits performed by the Texas Department of Insurance and independent external auditors in 2014 and 2018 confirmed the effectiveness of operational improvements and found no material weaknesses or issues in operational or financial controls.
  • The State Auditor’s Office found that the Association’s controls produce accurate financial information and help ensure accountability for funds.

Financial Performance

  • Secured approximately $4.2 billion in funding for the 2019 hurricane season; an amount in excess of the statutory minimum funding.
  • TWIA contributed $111 million to the Catastrophe Reserve Trust Fund from 2018 operations.
  • Since 2016, TWIA has facilitated the transfer of nearly 19,000 policies into the voluntary market through the Voluntary Market and Assumption Reinsurance Depopulation programs.

Claims Performance

  • Activated the Catastrophe Plan in August 2017 due to Hurricane Harvey, inspecting more than 64,000 properties or 92% of the more than 69,000 claims reported due to the storm.
  • Established Mobile Claim Centers (MCCs) in Rockport, Corpus Christi, and Port Aransas within days after Hurricane Harvey made landfall to directly issue advance claim payments to policyholders; in their first three weeks, the Mobile Claim Centers served more than 10,000 TWIA policyholders.
  • Within 100 days after the storm, TWIA issued payments in excess of $863 million and closed 93% of the reported claims.
  • The Association has maintained low complaint and dispute ratios for Hurricane Harvey claims at 0.4% and 5.6%, respectively, of the more than 76,680 claims reported.

Process and System Improvements

  • Implemented more modern policy and claims administration systems in 2015 and 2016, respectively, providing numerous benefits to agents and policyholders, including more payment and self-service options, and enhancing internal and external operational efficiency.
  • Reorganized the Underwriting department to effectively manage workflows, reducing seasonal backlogs.
  • Incorporated risk visualization into the inspection process, using aerial imagery and third-party data to more efficiently assess insurability, rate more accurately, and increase the total number of property inspections while reducing the cost per inspection on a per policy basis.
  • Installed a dedicated billing system consistent with industry best practices.
  • In-sourced document production to better integrate with our other internal processes, reducing thetime and costs associated with both incoming and outgoing mail.