TWIA Actuarial & Underwriting Committee Recommends 5% Increase in Rates

TWIA’s Actuarial & Underwriting Committee met today via Zoom and recommended that the TWIA Board of Directors vote to make a rate filing to increase rates by 5% for residential and commercial policies when it meets on August 3.

The recommendation came after the Committee reviewed the Rate Adequacy Analysis prepared by the Association’s actuarial staff. The analysis finds that TWIA rates are inadequate by 39 percent for residential coverage and 46 percent for commercial coverage. The Committee also heard public comment from stakeholders including elected officials and other coastal community members.

The Committee also voted to have TWIA staff conduct additional research into issues related to rates and report back to the Committee so that it can make further recommendations to the Board at a later date. TWIA staff will provide a timetable for reporting this information to the Committee at the August 3 Board meeting. Issues that the Committee has asked staff to provide information on are:

  • A review of the amount of current building code credits offered by TWIA;
  • Additional research on retrofit building credits;
  • Identifying existing insured property that might be eligible for credits that are not being provided; and
  • Identifying and comparing discounts in other states, including Florida Citizens Property Insurance Corporation, and the private market to TWIA.

The TWIA Board will consider the Committee’s recommendation, the analysis, and stakeholder feedback when voting to decide the amount of the Association’s annual required rate filing with the Texas Department of Insurance (TDI).

The Committee also received a review by TWIA staff of several proposed policy form updates and a proposed update to the Association’s Rate Manual. It is expected that TWIA staff will recommend to the TWIA Board of Directors at its August meeting that the filings be submitted to TDI for approval. While some of these changes may be considered rate filings by TDI, they will NOT result in an overall increase in TWIA rates.

An archived recording of TWIA Board and Committee meetings are available on TWIA’s website after the meeting at


Timeline of TWIA’s 2021 Annual Rate Filing Consideration Process

  • State law requires TWIA to make a rate filing with the Texas Department of Insurance by August 15 each year.
  • The annual rate filing is subject, in certain circumstances, to review and approval by the Commissioner of Insurance.
  • More information on TWIA rates and the rate filing process is available on TWIA’s website.

July 6, 2021: TWIA posts Rate Adequacy Analysis to its website for public review.

July 21, 2021: Actuarial & Underwriting Committee meets to review Rate Adequacy Analysis and vote on a recommendation to the TWIA Board of Directors regarding TWIA’s August 2021 annual rate filing.

August 3, 2021: TWIA Board of Directors meets to hear recommendation from the Actuarial & Underwriting Committee and public comment on the 2021 rate adequacy analysis and vote to direct staff regarding TWIA’s August 2021 annual rate filing.

August 15, 2021: Statutory deadline for TWIA staff to make annual rate filing with the Texas Department of Insurance.

October 15, 2021: Deadline for approval or disapproval of a TWIA rate filing by the Commissioner of Insurance, in some circumstances.