2018 Annual Rate Filing

The TWIA Board of Directors voted to increase rates for 2019 by 10% at the July 31, 2018 quarterly Board meeting. TWIA filed the proposed rate increase with the Texas Department of Insurance (TDI) by August 15, 2018, as required by law.

In making the decision to increase rates for 2019, the TWIA Board analyzed and considered the Actuarial and Underwriting Committee's recommendation to increase rates by 10%, input from a diverse group of stakeholders, and actuarial indications showing rates are currently inadequate by 32.2% for residential policies and 37.3% for commercial policies.

Texas Insurance Code (Chapter 2210) requires TWIA rates be “reasonable, adequate, not unfairly discriminatory, and nonconfiscatory as to any class of insurer.” Rates must also be based upon sound actuarial principles and sufficient to sustain projected Association losses and expenses. TWIA’s ratemaking process focuses on rate adequacy and is not the same as the process for securing annual funding for potential catastrophic weather losses. You can learn more about TWIA rates on our Rates webpage.

The Commissioner of Insurance must approve the rate filing before it can go into effect, and he has requested feedback from the public before making this decision. TDI will accept public comments about the proposed rate increase through October 1. More information on how to submit comments can be found on their website via this bulletin: https://content.govdelivery.com/accounts/TXINSUR/bulletins/20630bf.

If approved, the rate increase will go into effect January 1, 2019 and apply to all TWIA residential and commercial properties. New business and renewal policies issued in 2018 will not be affected by the rate increase until the policies renew in 2019.

You may find the meeting materials and archived recording for the July 31, 2018 quarterly TWIA Board meeting, as well as the archived recording for the July 25, 2018 Actuarial and Underwriting Committee meeting, on our Archived Meetings page.