Texas rejection of TWIA rate filing leaves state consumers more exposed to future storms

"APCIA is disappointed in the decision by the Texas Department of Insurance to reject the recommended filing of the Texas Windstorm Insurance (TWIA) Board. TWIA's own analysis showed their rates are 38% inadequate for residential and 45% inadequate for commercial policies. That report came before Hurricane Beryl damages cut TWIA's reserve fund in half. The fund's reserves are on pace to run dry next June. Even the state's consumer representative, the Public Insurance Counsel, recognized the need for a rate increase. The TWIA board passed a 10% increase by a 6-2 vote, which is more than the 2/3 vote required by law.

"We have just seen two hurricanes inflict destruction on Florida and the southeast only two weeks apart. We have seen powerful storms hit the Texas coast with similar power in the past, and we know it is just a matter of time before that happens again. With this decision, that time bomb will continue to tick. Absent a reversal of this decision, TWIA will likely not be fully prepared to pay claims and protect Texas consumers after future storms.

"APCIA looks forward to working with the Legislature to address the stability of TWIA during its 2025 session. But no measures will succeed if rates are not adequate."