Austin (TEXAS) —
Rate filings to increase rates by 10% for 2025 residential policies and by 10% for 2025 commercial policies will be presented to the TWIA Board of Directors for approval at their August 6 meeting, according to the recommendations made by the Actuarial & Underwriting Committee during their July 15 meeting.
Following consideration of the Association’s actuarial staff’s 2024 Rate Adequacy Analysis, the committee voted 5 to 1 in favor of the suggestion. Results show that TWIA rates are insufficient for 38% of residential coverage and 45% of business coverage, according to TWIA’s research. Members of the coastal community and elected leaders were among those who spoke before the committee.
The TWIA Board will vote on the content of the TWIA’s annual mandated rate filing with the Texas Department of Insurance at its August meeting after considering stakeholder feedback, the rate adequacy analysis, and the committee’s recommendation.
Procedure for TWIA to File Annual Rates for 2023:
On July 1, 2024, TWIA will make available for public scrutiny its annual Rate Adequacy Analysis on its website. The actuarial team at TWIA has estimated, in the Rate Adequacy Analysis, if the rates are enough to pay the Association’s operational costs and its anticipated claims losses.
The Rate Adequacy Analysis will be reviewed, public comment will be heard, and a recommendation will be developed to be submitted to the TWIA Board of Directors on the annual rate filing for August 2024 during the July 15, 2024, meeting of the Actuarial & Underwriting Committee.
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The Actuarial & Underwriting Committee will present its recommendation to the TWIA Board of Directors on August 6, 2024, and the Board will then have the opportunity to hear public discussion and cast a vote on how to instruct staff in preparation for the annual rate filing for August 2024.
Staff members of TWIA are required by law to submit the yearly rate filing to the Texas Department of Insurance no later than August 15, 2024.
On or before October 15, 2024, the Commissioner of Insurance must decide whether to approve or reject a TWIA rate filing.
The TWIA Board meeting is scheduled for August 6, and later this month, the organization will provide additional details on how folks can attend and participate in the discussion.
On the Meeting Library Page, you may find the meeting materials and the preserved tape of the Committee meeting.
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