Only a legislative fix will prevent a complete market failure in Texas and the legislators have shown a definite lack of will and foresight. If a storm hits and the market falls apart completely, Texans will have no one to blame except their state representatives (and a couple of misguided souls like Odie Zapp!).
At a roundtable discussion in february, Jim oliver stated that losses due to hurrican rita amounted to 700 million. if we had a direct hit on jefferson county, he predicted losses of 4 billion. if we had a rita size hurricane hit glaveston/houston the loss total would 6 to 9 billion. Oliver also stated that we had approximately 1 billion in reserves currently to handle claims. Now we have 1 billion in reinsurance to go along with that. The current article states that twia has approximately 60 billion in total exposure. There was talk at the roundtable discussion about tiered rates depending upon proximity to the water. the final thought was that twia understands the problem, but legislators want to hold the rates down for political purposes. The reinsurance is a start…not nearly enough
I doubt the market will collapse from a storm. It might be stung, but it won’t collapse. Texas isn’t Florida, there are plenty of non-hurricane exposed areas of the state to sustain the market. Not that that’s the way it should be, but they’ll be how it ends up.
The real problem is time, some has passed since the storm. People are starting to believe that it want happen again for 20 even 50 years. You plan today for tomorrows hurricane. Hurricanes are like god…no man knows the hour, time, or day when they will come.
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Only a legislative fix will prevent a complete market failure in Texas and the legislators have shown a definite lack of will and foresight. If a storm hits and the market falls apart completely, Texans will have no one to blame except their state representatives (and a couple of misguided souls like Odie Zapp!).
At a roundtable discussion in february, Jim oliver stated that losses due to hurrican rita amounted to 700 million. if we had a direct hit on jefferson county, he predicted losses of 4 billion. if we had a rita size hurricane hit glaveston/houston the loss total would 6 to 9 billion. Oliver also stated that we had approximately 1 billion in reserves currently to handle claims. Now we have 1 billion in reinsurance to go along with that. The current article states that twia has approximately 60 billion in total exposure. There was talk at the roundtable discussion about tiered rates depending upon proximity to the water. the final thought was that twia understands the problem, but legislators want to hold the rates down for political purposes. The reinsurance is a start…not nearly enough
I doubt the market will collapse from a storm. It might be stung, but it won’t collapse. Texas isn’t Florida, there are plenty of non-hurricane exposed areas of the state to sustain the market. Not that that’s the way it should be, but they’ll be how it ends up.
The real problem is time, some has passed since the storm. People are starting to believe that it want happen again for 20 even 50 years. You plan today for tomorrows hurricane. Hurricanes are like god…no man knows the hour, time, or day when they will come.