The Texas Windstorm Insurance Association (TWIA) Board of Directors met November 10 in Corpus Christi to review Association operations, discuss key issues affecting the Texas coastal insurance market, and take several actions related to funding, budgeting, and storm preparedness.

Among the meeting’s key outcomes were approval of TWIA’s 2027 operating budget, authorization to pursue approximately $44 million in financing for storm-related claims and expenses, and selection of a provider for catastrophe modeling services.

Here are the highlights from the meeting:

Catastrophe Funding: $44 Million Financing Request

The Board approved a request from TWIA staff to pursue a bank loan or other financing arrangement of approximately $44 million. The funding will be used to cover claims and expenses associated with Hurricane Beryl and other storms from 2024.

2027 Operating Budget Approved

The Board approved TWIA’s 2027 operating budget. Key highlights include:

• Lower Operating Expenses: Gross operating expenses are budgeted to decrease nearly 9% compared to the 2026 budget.
• Stable Net Operating Expenses: Net operating expenses are projected to remain relatively flat, increasing slightly from 5.5% of earned premium in 2026 to 5.6% in 2027. This figure reflects the cost of operating the Association, excluding expenses related to handling claims.
• Growing Catastrophe Reserve: TWIA’s Catastrophe Reserve Trust Fund (CRTF) is projected to reach approximately $350 million heading into the 2027 storm season.
• Policy Count and Premium Trends: TWIA projects its policy count and written premium will continue to flatten and decrease in 2027.

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Agent Commissions: No Action Taken

The Board received a follow-up report from TWIA staff regarding commissions paid to insurance agents. The report was provided in response to the Board’s request for additional information during its August meeting.

No action was taken on agent commission rates.

Catastrophe Modeling Services

The Board approved the selection of Howden Re to provide catastrophe modeling services to TWIA. These services help the Association evaluate potential storm losses and inform its financial planning and risk management strategies.

2027 Probable Maximum Loss (PML)

The Board will schedule an interim meeting before February 2027 to adopt a methodology for determining TWIA’s statutorily required one-in-50-year probable maximum loss (PML) for the 2027 storm season.

This calculation plays an important role in determining the level of funding and financial resources TWIA must maintain to prepare for potential catastrophic losses.

State Auditor’s Office Efficiency Audit

The Board also received a briefing on the results of an efficiency audit conducted by the State Auditor’s Office, as required by House Bill 12.

Among the audit’s recommendations was that TWIA strengthen its reporting to the Board on the status of its Depopulation programs.

Why This Matters to the Coastal Bend

TWIA plays a critical role in the availability and affordability of windstorm and hail insurance along the Texas coast. Its financial stability, claims-paying capacity, and long-term planning are important issues for Coastal Bend homeowners, businesses, insurance professionals, and the regional economy.

The Chamber will continue to monitor TWIA developments and advocate for a strong, sustainable coastal insurance market that supports our region’s businesses, property owners, and continued economic growth.

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