2019 Rate Adequacy Analysis

In accordance with laws passed by the 86th Texas Legislature, TWIA’s 2019 Rate Adequacy Analysis is now available on our website. The analysis will be considered by the TWIA Board of Directors at their upcoming meeting on August 6 during which the Board is expected to take action regarding the Association’s annual rate filing.

The Rate Adequacy Analysis concludes that TWIA’s current rates are inadequate by 41.7 percent for residential coverage and 50.0 percent for commercial coverage. A more thorough summary of conclusions is found in the Rate Adequacy Presentation to the Board, which is included with the Rate Adequacy Analysis documents.

The Rate Adequacy Analysis package can be reviewed at www.twia.org/about-us/#financials-reports, and includes:

  1. Cover Letter [Cover Letter 2019.pdf]
  2. Rate Adequacy Presentation to the Board [Board Presentation 2019.pdf]
  3. A summary of the hurricane model input assumptions [Assumptions 2019.pdf]
  4. A memorandum describing the TWIA Residential Rate Adequacy Analysis, including a discussion of actuarial methodologies and conclusions [Residential Memo 2019.pdf]
  5. Residential Rate Indication Exhibits [Residential Exhibit 2019.xlsx]
  6. A memorandum describing the Commercial Rate Adequacy Analysis, including a discussion of actuarial methodologies and conclusions [Commercial Memo 2019.pdf]
  7. Commercial Rate Indication Exhibits [Commercial Exhibit 2019.xlsx]
  8. Model Output provided by modelers:
    1. AIR Average Annual Loss by County [County Loss AIR 2019.xlsx] [County Loss AIR 2019.pdf]
    2. RMS Average Annual Loss by County [County Loss RMS 2019.xlsx] [County Loss RMS 2019.pdf]

    The Rate Adequacy Analysis is an estimate based on professional judgement and statistical modelling of future weather events. Actual future events will differ from these estimates.

    Members of the public may comment on the Rate Adequacy Analysis at CommunicationsMail@TWIA.org.  E-mailed comments received by Noon CT on Wednesday, July 31 will be provided to Board members at the August 6 meeting. There will also be a period for public comment with respect to the Association’s rate adequacy analysis at the August 6 TWIA Board meeting:

    TWIA Board of Directors Meeting
    August 6, 2019 at 9:00 a.m.
    Tremont House Hotel
    2300 Ship‘s Mechanic Row St
    Galveston, TX 77550