Operational Efficiency and Performance


  • Since 1971, TWIA has taken in approximately $6.2 billion in premiums and returned more than $5.7billion 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 $101 in 2017.
  • In 2018, TWIA’s operating expense as a percentage of earned premium was 6.9% compared to anaverage of 12% for Texas carriers.

Operational Costs

TWIA issues approximately 200,000 policies each year with premiums of approximately $397 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, includingexperience with national carriers, Texas-domiciled carriers, other residual markets, and the TexasDepartment 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 2014confirmed the effectiveness of operational improvements and found no material weaknesses or issuesin operational or financial controls.
  • The State Auditor’s Office found that the Association’s controls produce accurate financial informationand help ensure accountability for funds.

Financial Performance

  • Secured approximately $4.6 billion in funding for the 2018 hurricane season; an amount in excess of the statutory minimum funding.
  • TWIA contributed $110 million to the Catastrophe Reserve Trust Fund from 2018 operations.
  • Since 2016, TWIA has facilitated the transfer of nearly 17,000 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, 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.
  • Within 100 days after the storm, TWIA issued payments in excess of $863 million and closed 93% of thereported claims.
  • The Association has maintained low complaint and dispute ratios for Hurricane Harvey claims at 0.36%and 4.2%, respectively, of the more than 76,600 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.