The Texas Windstorm Insurance Association’s board of directors have voted for its member insurance companies to pay $90 million between them based on losses from hurricane Harvey while raising its ultimate loss estimate from $1.61 billion to $1.7 billion.
This $90 million figure is in addition to the $282 million already assessed and is based on an update to TWIA’s ultimate loss estimate for Harvey rising from $1.61 billion to $1.7 billion.
By law, most property insurers in Texas are required to be members of TWIA and share in a portion of the association’s losses.
TWIA’s board has also decided to defer further consideration of action regarding TWIA insurance rates on residential and commercial policies until next August.
It had previously been decided that the association’s actuarial & underwriting committee would look to engage an independent actuarial firm not based in Texas to review TWIA’s rate analysis.
Part of this change will see the use of hurricane modeling in determining rate adequacy as well as a report in support of the committee’s and the board’s annual rate review.
The work of the independent actuarial firm is to be completed before TWIA considers its next statutorily required rate filing due August 2020.
