TWIA Committee Directs Further Study on Rates, Makes No Recommendation on Change in Rates

At its December 1 meeting, the Texas Windstorm Insurance Association’s Actuarial & Underwriting Committee voted to forward an independent study on rates by actuarial consulting firm Willis Towers Watson (WTW) to the TWIA Board and directed additional study. Based on its updated actuarial analysis, WTW indicated that TWIA’s rates for residential policies are inadequate by 26 percent, and rates for commercial policies are inadequate by 44 percent.

Specifically, the Committee voted to make a report/recommendation to the TWIA Board as follows:

  • The Committee accepts WTW’s report and agrees to forward it to the TWIA Board;
  • the Committee makes no recommendation to the TWIA Board regarding action on rates at this time;
  • the Committee directs WTW and TWIA staff to produce additional modeling output for the TWIA Board’s consideration at its December 8 meeting.

The vote followed public comment and a presentation by WTW on its updated study of TWIA’s rate adequacy and the use of hurricane modeling in estimating potential losses in its rate-setting process. WTW’s most recent information is available on TWIA’s website.

The Board will consider the Committee’s report/recommendation and the additional modeling information at its December 8 meeting.

An archived recording of the Committee meeting is available on TWIA’s website at

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