TWIA Rate Increase Rejected by the Texas Department of InsurancePublished on: January 8, 2021
The Texas Department of Insurance (TDI) has rejected TWIA’s filing for a 5% rate increase on residential and commercial policies. TWIA’s Board of Directors voted to make the filing at its December 8, 2020 meeting.
In its rejection letter, TDI states that pursuant to Sec. 2210.3511 of the Texas Insurance Code TWIA should have made the rate adequacy analysis performed by Willis Towers Watson (WTW) and presented to the Board at the December 8 meeting available to the public on its website for 14 days before the Board votes on the rate filing. TDI views the WTW analysis to be part of the Association’s rate analysis. That analysis found TWIA rates to be inadequate by 26 percent for residential policies and 44 percent for commercial policies.
It is unknown at this time whether the TWIA Board will consider re-filing the rate increase. The Board is next scheduled to meet on February 23, 2021.