TWIA Board Reviews 2026 Budget and Catastrophe Models 

Published on: October 8, 2025

The Texas Windstorm Insurance Association’s (TWIA) Board of Directors met on October 8 to review information related to the Association’s 2025 budget. Select highlights of the proposed budget presentation include:   

  • Gross operating expenses for 2026 are budgeted to decrease by 11 percent from the 2025 budget. This decrease is primarily due to a significant decline in Loss Adjustment Expenses associated with 2024 Hurricane Beryl. Net operating expenses are forecasted to increase from 5.2% in 2025 to 5.6% of earned premium in 2026. 
  • TWIA is no longer subject to state premium and maintenance taxes due to legislation enacted this year. This expense will be reflected as zero for 2025 and 2026 and removed from future budgets.  
  • The Association anticipates much lower reinsurance costs in 2026 due to a new state law that reduces TWIA’s minimum required funding for each storm season. For budgeting purposes, TWIA staff assumes reinsurance in 2026 could be $100-200 million less than the $417 million in 2025. Actual reinsurance costs will vary depending on reinsurance market conditions and the TWIA Board’s determination of the minimum required catastrophe funding level under the recently enacted law. 
  • TWIA’s policy count, exposures, and premiums – which have all been rising since 2021 – are projected to plateau and may slightly decrease by the end of 2026. 
  • The Association expects to reduce temporary and contract headcount due to a reduction in temporary claims personnel used to process outstanding claims from Hurricane Beryl. Spending on IT-related consulting is also expected to decrease due to the completion of a multi-year project in early 2025, which moved TWIA’s policy management systems to the cloud. 

The Board will consider final action regarding the budget at its meeting on November 4 in Corpus Christi.   

The Board also received a briefing by Aon, TWIA’s catastrophe modeling vendor, on the catastrophe models that the Association has previously used to set TWIA’s minimum required catastrophe funding level for each storm season. 

Members of the media with questions about the Board meeting, please email MediaRelations@TWIA.org. 

The agenda, meeting materials, and archived recording for the Board meeting are available on our Meeting Library page.