The Texas Windstorm Insurance Association’s (TWIA) Board of Directors met on Tuesday, February 18 in Austin. The Board elected officers and approved the Association’s 2020 budget and reinsurance program.
Officers and Committees
The Board elected Chandra Franklin-Womack, First Tier Coastal Representative, as Chair and Georgia Neblett, First Tier Coastal Representative, as Vice Chair. Corise Morrison, Insurance Industry Representative, will continue to serve as Secretary-Treasurer.
The Board updated the membership of the Legislative & External Affairs Committee of the Board in preparation for the development of the Association’s Biennial Report to the Legislature. The Texas Insurance Code requires that TWIA submit this report, including proposed changes in the laws relating to regulation of the Association, on or before December 31 of each even-numbered year.
2020 Budget and Reinsurance Program and Related Measures
The Board voted to seek the approval of the Commissioner of Insurance to expend $45 million of the Association’s 2019 net earnings to partially redeem the Series 2014 bonds used for the payment of Hurricane Harvey losses.
Following a presentation by TWIA’s reinsurance broker, the Board determined TWIA’s 1-in-100 probable maximum loss (1:100 PML) for the 2020 catastrophe year to be $4.2 billion, including loss adjustment expenses. The Board directed TWIA staff to place a combination of catastrophe bonds and traditional reinsurance in an aggregate amount totaling $2.1 billion to bring the Association’s 2020 catastrophe funding to $4.2 billion.
The Board also approved the Association’s 2020 budget.
An archived recording of the Board meeting will be available on TWIA’s website by early next week at www.twia.org/about-us/board-of-directors/archived-meetings.
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