View this article online: https://www.insurancejournal.com/news/southcentral/2023/08/09/734663.htm

TWIA Board Votes Down Recommended Rate Increases

Though an analysis found rates at Texas’ insurer of last resort to be about 20% inadequate, its board on Tuesday did not come to an agreement to file for any rate increases.

The board of the Texas Windstorm Insurance Association (TWIA) voted 5-4 on a recommendation by its Actuarial & Underwriting Committee to file rate increases for 2024 of 5% for residential properties and 8% for commercial policies. The vote, TWIA said, did not meet a statutory requirement that rate increases get a two-thirds vote.

Related: TWIA Finalizes Funding for 2023 Storm Season

Therefore, TWIA will file a 0% rate change for its annually required filing with state insurance regulators.

The actuarial staff at TWIA found the association’s rates to be inadequate by 20% for residential and 22% for commercial coverage.

At the meeting the board also:

• Directed staff to file for no changes to the Association’s maximum liability limits with TDI.
• Approved the staff recommendation to continue the contract with Aon for catastrophe modeling services with another Request For Proposal (RFP) process to take place in
• Received an update on a project to study agent commissions.
• Directed staff to notify the Texas Comptroller of Public Accounts that the entire Catastrophe Reserve Trust Fund balance be kept available to fund the payment of insured losses.
• Approved the engagement of Calhoun, Thomson + Matza for auditing/accounting services for 2024 and authorized other non-auditing services.