TWIA Annual Rate Filing Review Process Set to Begin – Alice Echo News Journal


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The Texas Windstorm Insurance Association (TWIA) annual rate filing review process is about to begin. TWIA is the wind and hail insurer of last resort on the Texas coast, covering more than 194,000 homes and businesses.

By law, TWIA must file a rate filing with the Texas Department of Insurance by August 15 each year. TWIA’s Actuarial and Underwriting Committee typically meets in July prior to the rate filing date to decide on a rate recommendation to TWIA’s Board of Directors. The Board then meets in August to make a decision on the filing.

The public is invited to comment in writing, in person or virtually at meetings of the Actuarial and Underwriting Committee and TWIA Board of Directors. Public comment information and meeting agendas will be posted on the TWIA website in advance of all scheduled meetings.

Laws passed last year:

• Require a two-thirds vote of the Board to approve a rate increase.

• Make all TWIA filings for a rate increase subject to review and approval by the Commissioner of Insurance. (Previously, this was only the case for rate increases greater than 5% and in certain other circumstances.)

• Prohibit the Board from voting on a proposed rate increase if there is a vacancy on the Board that has existed for at least sixty days at the time the vote is to take place. (There are currently no vacancies on the Board of Directors.)

CHRONOLOGYBelow are the key dates for TWIA’s annual rate filing review process:

July 1, 2022: TWIA publishes an annual fare adequacy analysis on its website for public review. The rate adequacy analysis is a professional estimate by TWIA’s actuarial staff of the adequacy of rates to cover the Association’s operating expenses and expected losses from claims.

July 18, 2022: Actuarial and Underwriting Committee Meets to Review Rate Adequacy Analysis, Hear Public Comments, and Vote on a Recommendation to TWIA’s Board of Directors Regarding the Filing of TWIA’s Annual Rates in August 2022 .

August 2, 2022: The TWIA Board of Directors is meeting to hear the recommendation of the Actuarial and Underwriting Committee and public comments and votes to direct staff regarding the filing of TWIA’s August 2022 Annual Rates.

August 15, 2022: Legal deadline for TWIA personnel to file annual rate with the Texas Department of Insurance.

October 15, 2022: Legal deadline for the approval or disapproval of a TWIA rate filing by the Commissioner of Insurance.

Further information on the dates of TWIA’s board and committee meetings and how to provide public comment is available on TWIA’s website.


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