Operational Efficiency and Performance


  • Since 1971, TWIA has taken in approximately $6.6 billion in premiums and returned more than $5.8 billion to policyholders in claim payments and claim expenses.
  • TWIA issued approximately 200,000 policies in 2019 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.
  • In 2019, TWIA’s operating expense as a percentage of earned premium was 7.6% compared to an average of 13% for Texas carriers.

Operational Costs

As of December 31, 2019, TWIA policies in-force numbered 189,203 with insured building and contents coverage totaling $55.2 billion. 2019 written premiums were $372.0 million. TWIA’s costs associated with policy issuance, billing, and other operations of the Association are 8% 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 2019 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 2020 hurricane season, which is equal to our statutory funding requirement.
  • TWIA contributed $52.6 million to the Catastrophe Reserve Trust Fund (CRTF) from 2019 net earnings, bringing the total amount in the CRTF to $177 million.
  • 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, resulting in nearly 77,000 TWIA claims, the second-highest number of claims received in the Association’s history. Made $1.3 billion in claim payments to TWIA policyholders and maintained low claims complaints and dispute ratios of 0.38% and 5.6%, respectively, as of December 31, 2019.
  • Maintained low claims cycle times of 9.8 days in 2019 from First Notice of Loss to claim payment andlow claims complaint and dispute ratios of 0.46% and 2.8%, respectively, in 2019.
  • Installed a claims Resource Management System (RMS) to enhance the tracking and management of field adjuster and desk examiner services in 2018.
  • Implemented a claims authority control system in February 2020 to streamline the process for issuing claim payments of $25,000 to $100,000, reducing the time to distribute claim payments by three to four days.

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 the time and costs associated with both incoming and outgoing mail.