According to TWIA’s own actuaries, there is a 27 percent chance it would not be able to cover all of its liabilities during the 2012 hurricane season if it doesn’t move to raise rates.
The Texas Windstorm Insurance Association’s board of directors will consider proposals to raise rates by 4.7 percent overall and allow TWIA to use territorial rating in its rate-setting.
Early estimates from the tornadoes and hailstorms that hit Dallas April 3 suggest at least $300 million in insurance claims, with the total projected to rise to potentially as high as $500 million.
Letter from Austin: Texas policyholders don’t like Ike
Claims to the Texas Windstorm Insurance Association stemming from the September 2008 storm continue to pile up.
Letter from Austin: Kitzman drops bomb on TWIA
In just over a decade, the Texas Windstorm Insurance Association’s market share has tripled to include over half of the policies written in the Tier 1 coastal region of the state
Texas’ experience with the “margin tax” on state businesses has been a disaster.
State Sen. John Carona, chair of Texas’ Senate Business and Commerce Committee, is running out of patience for high property insurance rates and warning more regulation could be coming soon.
Letter from Austin: TWIA considers alternatives to reinsurance
Meanwhile, a joint legislative committee has been formed to study alternative methods to provide coverage to coastal residents.
Despite recent increases, the Texas Windstorm Insurance Association’s rates still don’t pass actuarial muster.
The Texas Windstorm Insurance Association is laying out its plan to cut costs with a more efficient and transparent system for legal expenses.