Texas Windstorm Coverage Rates Rising to Build Catastrophe Fund

Texas Insurance Commissioner Mike Geeslin recently approved rate increases of 8.2 percent for residential properties and 5.4 percent for commercial properties covered by the Texas Windstorm Insurance Association, which is the state's insurer of last resort for windstorm coverage. The changes are effective Feb. 1, 2008. TWIA had requested a 10 percent increase for both in a filing in August.

The Texas Department of Insurance said much of the rate increase comes from raising to 25 percent the portion of the rate intended for adding to TWIA's Catastrophe Reserve Trust Fund. The catastrophe fund has not kept up with the growth in TWIA exposure during the past few years, with the association experiencing significant increases in new policyholders as private insurance companies pulled away from the designated catastrophe area. "This increase is a necessary part of our long-term strategy to improve the financial health of the Windstorm Association," said Geeslin. "Money put into the CRTF is available as a safety net to pay losses in the event of a major hurricane, unlike reinsurance that has been purchased the past several years."

He said other measures are under consideration, as well, including alternate funding sources, loss mitigation efforts, and administrative controls. The increase will mean the $1,023 estimated average premium for a residential TWIA policy will rise by $84 per year.

Download Center

  • Safety Metrics Guide

    Is your company leveraging its safety data and analytics to maintain a safe workplace? With so much data available, where do you start? This downloadable guide will give you insight on helpful key performance indicators (KPIs) you should track for your safety program.

  • Job Hazard Analysis Guide

    This guide includes details on how to conduct a thorough Job Hazard Analysis, and it's based directly on an OSHA publication for conducting JHAs. Learn how to identify potential hazards associated with each task of a job and set controls to mitigate hazard risks.

  • A Guide to Practicing “New Safety”

    Learn from safety professionals from around the world as they share their perspectives on various “new views” of safety, including Safety Differently, Safety-II, No Safety, Human and Organizational Performance (HOP), Resilience Engineering, and more in this helpful guide.

  • Lone Worker Safety Guide

    As organizations digitalize and remote operations become more commonplace, the number of lone workers is on the rise. These employees are at increased risk for unaddressed workplace accidents or emergencies. This guide was created to help employers better understand common lone worker risks and solutions for lone worker risk mitigation and incident prevention.

  • EHS Software Buyer's Guide

    Learn the keys to staying organized, staying sharp, and staying one step ahead on all things safety. This buyer’s guide is designed for you to use in your search for the safety management solution that best suits your company’s needs.

  • Vector Solutions

Featured Whitepaper

OH&S Digital Edition

  • OHS Magazine Digital Edition - May 2022

    May 2022

    Featuring:

    • WEARABLE TECHNOLOGY
      How Wearable Technology is Transforming Safety and the Industrial Workplace
    • TRAINING: CONFINED SPACES
      Five Tips to Improve Safety in Confined Spaces
    • INDUSTRIAL HYGIENE
      Monitor for Asbestos to Help Save Lives
    • PPE: FALL PROTECTION
      Fall Protection Can Be Surprising
    View This Issue