No Rate Item on Feb. 18 TWIA Meeting
What is NOT on the agenda at the February 18 quarterly meeting of the Texas Windstorm Insurance Association is perhaps more newsworthy than what is. In announcing its meeting, which begins at 9 a.m. at the Austin Marriott South, 4415 Interstate 35 South in Austin, TWIA made note in its meeting announcement that consideration of a rate increase will not be on an agenda “until the next statutorily required filing in August 2020.”
Rates were on the agenda at the last two TWIA meetings: one in August 2019 and the second in December 2019. The association is required by law to submit a rate request to the Texas Department of Insurance by October 15 of each year. Anything under 5 percent does not require TDI approval. Anything over 5 percent does.
In August 2019, the TWIA Board of Directors notified the Department of Insurance it was requesting a zero percent increase for 2020. However, it also appointed new members to an actuarial committee to study a rate adequacy analysis showing residential and commercial rates were 41 percent and 50 percent inadequate, respectively.
The actuarial committee recommended a 5 percent increase at its meeting in November 2019. The TWIA board decided against the increase at its December quarterly meeting in Corpus Christi, which drew a large crowd of people speaking out against any increase in windstorm insurance rates.
Items on the February 18 agenda include a financial statement review by the staff, possible action on five different actuarial items, and possible action on an internal audit. The board will discuss claims and litigation as well as five items under the listing TWIA Operations.
An executive session will be held after a one-hour lunch, which starts at 11 a.m. The meeting will gavel back into open session to consider any items related to the executive session. Only 10 more minutes are set aside on the agenda to discuss committees and future meetings before adjournment.
Item No. 5 on the 18-item agenda, Public Comment, is scheduled for 15 minutes during the morning session.
The next meetings are scheduled for May 12 at the Hyatt Regency in Austin and August 4 at Tremont House in Galveston. A date and location for the December 2020 quarterly meeting has not been set.
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