The United Corpus Christi Chamber of Commerce is proud to support House Bill 3689—an important step toward creating a fairer, more stable windstorm insurance system for Texas’ coastal communities.

Reforming TWIA’s Funding Mechanism

In the years following Hurricane Ike, the Texas Windstorm Insurance Association (TWIA) relied heavily on debt securities to fund claims. As a result, premiums collected in 2010, 2011, and 2012 were used primarily to pay off debt rather than to protect policyholders. This left thousands of Texans vulnerable during hurricane season and contributed to rising insurance rates.

HB 3689 takes a smarter, more sustainable approach by eliminating the use of debt securities and allowing TWIA to borrow from the state’s Economic Stabilization Fund, commonly known as the Rainy Day Fund. Under this bill, TWIA would be permitted to borrow up to $500 million before a storm and up to $1 billion afterward. These loans would be repaid through a temporary, statewide surcharge on most insurance policies, assessed once a year for three years. This model mirrors how Texas addresses other natural disasters, such as wildfires and hailstorms.

Why It Matters

The Gulf Coast is an economic engine for Texas. According to a 2015 report by economist Ray Perryman, more than one-third of the state’s economic activity comes from the 14 counties covered under TWIA. A fair, stable, and predictable insurance framework is essential for maintaining business confidence and continuity in this region.

By lowering and stabilizing insurance costs, HB 3689 will encourage businesses to invest, grow, and create jobs in coastal communities. This reform also promotes long-term infrastructure development and economic resilience, not just for the coast, but for the entire state.

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Upcoming Hearing: Make Your Voice Heard

HB 3689 is scheduled for a hearing in the Texas Senate’s Business & Commerce Committee on Thursday, May 15, at 8:00 a.m. This is a crucial opportunity to show broad support for a policy that will benefit our coastal communities and strengthen the state’s overall economic stability.

How You Can Support HB 3689:

• Submit written testimony in support of the bill to the committee by emailing the committee clerk: daniela.velez-blanc_SC@senate.texas.gov. 

Suggested comment: “I strongly support HB 3689 because Texas coastal residents deserve affordable, reliable windstorm insurance. This bill ensures that the Texas Windstorm Insurance Association (TWIA) operates fairly and transparently. It strengthens funding while limiting excessive assessments and surcharges on policyholders. Coastal families, small businesses, and property owners need accountability, not higher costs.  Please advance HB 3689 for the benefit of all Texans along the coast.”

• Contact your state senator and urge them to support HB 3689.

• Share this post with your network to help spread awareness.

• Attend the hearing in person at the Texas Capitol if you are able.

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A Better Future for All Texans

The reforms in HB 3689 represent a significant step toward protecting policyholders, ensuring financial stability for TWIA, and treating all Texans equitably in the aftermath of natural disasters. At the United Corpus Christi Chamber of Commerce, we believe this bill will strengthen our coastal communities and support the continued growth of the Texas economy.

We urge community members, business leaders, and advocates across Texas to support HB 3689 and help secure a more resilient future for our region and our state.