TWIA Committee Recommends 0% Rate Change for Wind and Hail Policies, May Revisit Rates Later in 2020

The Texas Windstorm Insurance Association’s (TWIA) Actuarial & Underwriting Committee voted to recommend to the TWIA Board of Directors that the Association file a 0% rate change for commercial and residential wind and hail insurance policies in its required August rate filing. However, the Committee may revisit the issue of TWIA rates later this year if directed by the Board.

TWIA is required by statute to make a rate filing with the Texas Department of Insurance by August 15 each year. The TWIA Board is expected to receive the Committee’s recommendation and vote on the statutorily required rate filing at its quarterly meeting on August 4. The annual rate filing is subject, in certain circumstances, to review and approval by the Commissioner of Insurance.

At its July 21 meeting, the Committee reviewed the 2020 Rate Adequacy Analysis prepared by the Association’s actuarial staff. The analysis indicates that TWIA’s current rates are inadequate by 44 percent for residential coverage and 49 percent for commercial coverage.

The Committee also voted to advise the TWIA Board that, due to pandemic-related delays, it recommends to the Board that the Committee should continue reviewing TWIA’s rate adequacy later this year, taking into account the independent study currently underway of TWIA’s rate adequacy and use of hurricane modeling in estimating potential losses in its rate-setting process. The study is being performed by consulting firm Willis Towers Watson, which provided a status update on their work at today’s meeting.

In addition, the Committee received a presentation on the North Atlantic Hurricane Model from Risk Management Solutions Inc. (RMS).

More information on TWIA rates and the rate filing process and TWIA’s 2020 Rate Adequacy Analysis are available on TWIA’s website.

Members of the public may comment on the 2020 Rate Adequacy Analysis via email to Emailed comments received by Noon CT on Friday, July 31 will be compiled and provided to the TWIA Board of Directors prior to the August 4 meeting.

There will also be a period for public comment with respect to the Association’s 2020 Rate Adequacy Analysis at the August 4 Board meeting, which will be held via teleconference. Information on how individuals may participate in the August 4 Board meeting will be posted to TWIA’s website on July 24.

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

If you are a member of the media, you may send inquiries to

Timeline of TWIA’s 2020 Annual Rate Filing Consideration Process

July 17, 2020: Noon deadline for written public comment to the Actuarial & Underwriting Committee related to the meeting agenda.

July 21, 2020:

  • TWIA to post Rate Adequacy Analysis to its website for public review.
  • Actuarial & Underwriting Committee meets to review 2020 Rate Adequacy Analysis and vote on a recommendation to the TWIA Board of Directors regarding TWIA’s August 2020 annual rate filing.

July 31, 2020: Noon deadline for written public comment to the TWIA Board of Directors related to the Association’s August 2020 rate filing.

August 4, 2020: TWIA Board of Directors meets to hear recommendation from the Actuarial & Underwriting Committee and public comment on the 2020 rate adequacy analysis and vote to direct staff regarding TWIA’s August 2020 annual rate filing.

August 15, 2020: Statutory deadline for TWIA staff to make annual rate filing with the Texas Department of Insurance.

October 15, 2020: Deadline for approval or disapproval of a TWIA rate filing by the Commissioner of Insurance, in some circumstances.