The Actuarial & Underwriting Committee of the Texas Windstorm Insurance Association (TWIA) has voted to recommend that the Association’s Board of Directors select Willis Re (now Gallagher Re) for reinsurance broker services.
We wrote in November that TWIA was considering changing its reinsurance broker from Guy Carpenter, with the committee also recommending that Aon be chosen to provide catastrophe modelling services.
TWIA’s Actuarial & Underwriting Committee met on December 6th to review best and final offers from respondents to the Association’s recent Request for Proposals for reinsurance broker services.
The entity leverages a reinsurance broker to facilitate its annual purchase of reinsurance as part of its required catastrophe funding for each hurricane season.
At the meeting, the Committee voted to recommend to the Board of TWIA that the Association contract with Willis Re for reinsurance broker services.
Of course, Willis Re now operates as Gallagher Re after being acquired by the firm recently for $3.25 billion.
Previously, the Committee voted to recommend that the Association separately contract with broker Aon to assist with the catastrophe modeling related to its statutorily required determination of the Association’s 1-in-100-year probable maximum loss for each hurricane season and the Association’s annual Rate Adequacy Analysis.
The Committee’s Chair will report these recommendations to the Board at its next quarterly meeting on December 7th.
Update: TWIA’s Board agreed with the recommendation to change reinsurance broker, voting to select Gallagher Re.