On December 10, the Texas Windstorm Insurance Association Board of Directors voted to assess member insurance companies $90 million based on losses from Hurricane Harvey and voted to defer further consideration of action regarding TWIA insurance rates on residential and commercial policies until its next statutorily required rate filing in August 2020. The member company assessment requires the approval of the Insurance Commissioner.
The assessment of member insurance companies is in addition to the $282 million already assessed and is based on an update to TWIA’s ultimate loss estimate for Hurricane Harvey to $1.7 billion from the previous estimate of $1.61 billion. By law, most insurers authorized to engage in the business of property insurance in Texas are required to be members of TWIA and share in a portion of the Association’s losses.
The Board voted to direct the Actuarial & Underwriting Committee to work with staff to develop a request for proposals to engage an independent actuarial firm not based in Texas to review TWIA’s rate analysis and use of hurricane modeling in determining rate adequacy and to prepare a report in support of the committee’s and the board’s annual rate review. The work of the independent actuarial firm is to be completed before TWIA considers its next statutorily required rate filing due August 2020.
The Board’s next quarterly meeting will be held in Austin in February 2020.