Texas Windstorm Insurance Association policyholders will not be impacted by a premium rate increase in 2019.
On May 24, 2019, the TWIA Board of Directors voted unanimously to withdraw the Association’s annual rate filing made in August 2018, which is currently pending with the Texas Department of Insurance. Last year, Governor Abbott suspended the Insurance Commissioner’s consideration of this filing until June 16, 2019, giving the Legislature an opportunity to consider concerns about TWIA’s actuarial soundness and to facilitate continued coastal recovery from the effects of Hurricane Harvey.
The Board also authorized TWIA staff to work with the Texas Public Finance Authority and the Texas Department of Insurance to effect the refinancing of the outstanding balance of the $500 M in Class 1 public securities issued pre-event in 2014. TWIA used the proceeds of the issued Class 1 bonds to pay policyholders’ Hurricane Harvey claims. The outstanding balance may be refinanced early without penalty beginning July 1, 2019.
More information on TWIA rates is available on TWIA’s website at www.twia.org/rates. If you are interested in listening to an archived recording of the May 24, 2019, TWIA Board meeting, it will be available on TWIA’s website by early next week at www.twia.org/about-us/board-of-directors/archived-meetings.
Members of the media may direct inquiries about the Board’s decision to firstname.lastname@example.org.