Texas Windstorm Insurance Rates Will Increase Five Percent Yearly

The TWIA board of directors met and addressed agenda items that are critical to funding and operations for the next year. Insurance Commissioner Kitzman attended the meeting and said that the administrative oversight of TWIA will continue for the foreseeable future and may continue until TWIA operations and funding are restructured.  The independent actuary retained by TWIA to study rates found that residential rates should be increased 47%.  The TWIA internal actuary had found rate indications of +22% for residential property.  The board decided two years ago to adopt a 5% increase each year until rates are adequate and decided to stick with that strategy and file for a 5% increase in the August filing.  This rate increase would become effective 1/1/13.  The board also directed the actuary to prepare a rate filing that would establish rating territories and would increase rates overall by 4.7%.  They hope to file that rate increase in late August or early September in order to have a 1/1/13 effective date. The combination of the two rate filings would provide an overall rate increase of 9.7% for TWIA policies in 2013.