The Texas Windstorm Insurance Association (TWIA) Board of Directors met on October 8 to review information related to the Association’s 2025 budget and receive updates on financial and operational planning for the coming year.

Key Budget Highlights

TWIA staff presented the proposed 2025 budget, noting several important updates:

• Operating Costs: Gross operating expenses for 2026 are budgeted to decrease by 11 percent from the 2025 budget, primarily due to a reduction in loss adjustment expenses associated with Hurricane Beryl.
• Reinsurance Costs: Reinsurance expenses are expected to decline significantly in 2026, potentially by $100–200 million, as a result of a new state law reducing TWIA’s minimum required catastrophe funding.
• State Tax Savings: Due to legislation enacted this year, TWIA will no longer be subject to state premium and maintenance taxes beginning in 2025, resulting in ongoing savings.
• Staffing and IT Projects: The Association expects to reduce temporary claims staff and consulting expenses as hurricane-related claims are resolved and a major IT modernization project concludes in early 2025.
• Policy Trends: TWIA’s policy count, exposures, and premiums, which have steadily risen since 2021, are projected to stabilize and slightly decline by the end of 2026.

The Board will consider final action on the 2025 budget at its next meeting on November 4 in Corpus Christi.

Upcoming Actuarial & Underwriting Committee Meeting

The TWIA Actuarial & Underwriting Committee will meet virtually on October 23 at 10:00 a.m. CT to develop a recommendation for how TWIA determines its 1-in-50 Probable Maximum Loss (PML), the new minimum required funding level under House Bill 3689, passed earlier this year.

This recommendation will be reviewed by the full TWIA Board at its November 4 meeting in Corpus Christi, before submission to the Texas Commissioner of Insurance.

The Committee meeting will be livestreamed on YouTube and open to public participation via Zoom or in person at TWIA’s office in Austin.

Public Comment Opportunities

TWIA welcomes stakeholder input on the Actuarial & Underwriting Committee’s work. Members of the public may participate in one of three ways:

1. Written Comments:
   • Submit comments via email to PublicComment@TWIA.org by noon on October 21 for consideration before the October 23 meeting.
   • All written comments are shared with the Committee and posted publicly (with personal information redacted).
2. Virtual Verbal Comments:
   • Register to attend via Zoom and provide oral comments remotely.
   • After registering, participants will receive an email with login details.
3. In-Person Comments:
   • Attend the meeting at TWIA’s office:
     Texas Windstorm Insurance Association
     4801 Southwest Parkway, Building One, Suite 200
     Austin, TX 78735

November 4 Board Meeting in Corpus Christi

The TWIA Board of Directors will convene in Corpus Christi on November 4 to take final action on the 2025 budget and consider recommendations from the Actuarial & Underwriting Committee. The Chamber encourages local stakeholders to attend and engage in this important discussion affecting insurance costs and coastal resilience for the region.