Texas Windstorm Insurance Association (TWIA)

The Texas Legislature completed the special session and adjourned sine die at the end of June. Of particular importance to TCAIS members is that legislators passed needed changes to how the Texas Windstorm Insurance Association (TWIA) is funded and pays claims.

Most of the TWIA debate addressed TWIA tort liabilities and how it pays claims, which is very important. However, major hurricanes in 2008 drained TWIA’s reserves and illustrated weaknesses in its financial structure, which includes post-storm assessments of private insurers, putting Texans across the state on the hook. In both the special session and legislative interim, TCAIS encouraged lawmakers to study reforms that return TWIA to its mandated mission as a solvent insurance provider of last resort, ensure its ability to pay customer claims, and create a more competitive and stable marketplace for Texans across the state. That includes charging actuarially supported rates, handling claims in an efficient and fair manner, and having the necessary funds to pay for claims from policyholders. Link to HB 3 – TWIA legislation passed during the special session.

Learn more about TWIA (Download TCAIS Information Packet).