The Texas Windstorm Insurance Association (TWIA) expects its ultimate loss and loss adjustment expenses from Hurricane Harvey to be approximately $1.13 billion. As of October 12, 2017, TWIA has received 69,833 claims, including commercial, residential and manufactured housing.
To date TWIA has closed over 36,894 claims, representing over 50% of the claims received.
To date, TWIA has paid approximately $460 million in claim payments, including closed and open claims.
On September 21, 2017, TWIA requested funding from the Catastrophe Reserve Trust Fund (CRTF) in the amount of $370.7 million TWIA expects to make an additional request for funding from CRTF based on its actual claim payment experience and the estimated ultimate loss referenced above.
Based on the estimated ultimate loss and loss adjustment expenses, TWIA expects to utilize the full amount of the CRTF ($741 million before Hurricane Harvey) and a portion (approximately $290 million) of the proceeds of the Class 1 “Pre-Event” bonds issued in 2014.
At this time, based on the estimated ultimate losses and loss adjustment expenses attributable to Hurricane Harvey, and subject to no claims arising from future 2017 catastrophic events, TWIA does not expect it will need to assess its members.
The estimated ultimate losses discussed above are based on an analysis of claims already reported and projected to be reported, estimated values of properties in the affected area, estimated damage covered by TWIA policies, and other factors requiring significant judgment. As a result of the foregoing and other factors, including the scope of the storm, the number of insureds affected, the complexity of factors contributing to the losses and the preliminary nature of the information used to determine the estimate, the actual losses associated with Hurricane Harvey may be materially different than the current estimate.