Operational Efficiency and Performance


  • TWIA issues approximately 200,000 policies each year with premiums of more than $395 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 $101 in 2017.
  • TWIA’s operating expense as a percentage of earned premium is 7%.
  • Industry average for Texas carriers is 12% of premium.

Operational Costs

TWIA issues approximately 200,000 policies each year with premiums of approximately $395 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 (12%).


  • TWIA’s management team has over 200 years of combined insurance industry experience, including experience with national carriers, Texas-domiciled carriers, and other residual markets, as well as with the Texas Department of Insurance.
  • Audits performed by the Texas Department of Insurance and independent external auditors in 2014 confirmed the effectiveness of operational improvements and found no material weaknesses or issues in operational or financial controls.

Financial Performance

  • Secured approximately $4.6 billion in funding for the 2018 hurricane season; an amount in excess of the statutory minimum funding.
  • Transferred approximately 12,800 policies to participating carriers in the private market from the first (2016-2017) and second (2017-2018) cycles of the Assumption Reinsurance Depopulation program.
  • The State Auditor’s Office found that the Association’s controls produce accurate financial information and help ensure accountability for funds.

Claims Performance

  • Activated the Catastrophe Plan in August 2017 due to Hurricane Harvey, receiving almost 40,000 claims within the first week after 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.
  • Closed over 96% of the 76,000 plus claims received for Hurricane Harvey and maintained low complaint and dispute ratios at 0.30% and 5.0%, respectively, as of Q3 2018.
  • Paid policyholders $694 million within in the first 60 days post-storm (or 60% of the $1.18 billion total paid as of Q3 2018).

Process and System Improvements

  • Implemented a more modern policy administration system, Policy Center, in 2015, providing numerous benefits to agents and policyholders, including more payment and self-service options and automated, rules-based determination of policy eligibility.
  • Implemented a new claims administration system in 2016 to enhance internal and external operational efficiency and provide better quality service to agents and policyholders.
  • 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.