The Texas Windstorm Insurance Association (TWIA) announced it is in its strongest-ever position for this year’s hurricane season with $4.9 billion in total funding available to pay claims. The funding level is sufficient to cover a 100-year storm season and more than 99 percent of all possible storm seasons according to the association. The funding includes the current year’s premiums, the Catastrophe Reserve Trust Fund (CRTF), a combination of public securities and company assessments and a tailored reinsurance program including both traditional reinsurance and catastrophe bonds.
As a result of increased operational efficiencies and several hurricane-free seasons, the Association’s CRTF is at its largest-ever balance at approximately $600 million. This has allowed TWIA to decrease its reinsurance program by $100 million while maintaining overall funding of $4.9 billion for the second straight year.
Under the new funding structure enacted by the 84th Texas Legislature (SB 900), no assessments or surcharges will be required until after the CRTF is depleted and TWIA losses exceed $1.2 billion.
In 2015, TWIA’s CAT plan was put to the test during a series of spring storms. By scaling up its professional experienced staff, while leveraging claims best practices, TWIA was able to successfully handle near-record claim volume while maintaining excellent customer satisfaction.
The Texas Windstorm Insurance Association (TWIA) was established by the Texas Legislature in 1971 in response to regional market conditions following Hurricane Celia in August 1970.
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