Texas Windstorm Insurance Association Approves Florida-Inspired Clearinghouse; 2014 TWIA Annual Report Focuses on HB 3 Implementation

Jun 9, 2014

Following is an update on recent activities of the Texas Windstorm Insurance Association:

TWIA Board Votes to Authorize Clearinghouse Similar to Florida

At its May 21, 2014 meeting, the Texas Windstorm Insurance Association (“TWIA”) Board of Directors (“Board”) authorized the building of a Clearinghouse similar to that launched in Florida this year.

A feasibility study on a proposed TWIA Clearinghouse was published earlier in 2014. To view the study, which contains heavy references to Florida’s activities, click here.

TWIA’s Depopulation Committee made the recommendations below that were ultimately approved by the Board as part of the TWIA Clearinghouse plan:

Access to the Clearinghouse portal will be limited to TWIA members (admitted carriers and any affiliated non-admitted companies);
The existing agent of record will be maintained by the takeout carrier via a direct contract or limited servicing agreement;
All participating carriers will sign confidentiality and term-of-use agreements before being granted access to the Clearinghouse; and
Nothing must restrict policyholders’ ability to choose to participate in a takeout and use the agent of their choice.

To view the May 21 Board meeting materials and an archived Webcast, click on the hyperlinks below:

Agenda

Materials

Archived recording

TWIA 2014 Annual Report Focuses on HB 3 Implementation

Publicly released on June 4, 2014, the Texas Windstorm Insurance Association (“TWIA”) statutory annual report focuses on the many changes that have taken place at the organization since Texas House Bill 3 (“HB 3”) became effective on September 28, 2011.

In 2008, the combination of Hurricanes Dolly and Ike resulted in over 100,000 claims and an estimated $3 billion in losses to TWIA. Subsequent questions over claims handling procedures resulted in TWIA being placed under administrative oversight by the Texas Department of Insurance and the enactment of HB3, which required numerous changes to TWIA operations.

Among TWIA’s improvements are new residential and commercial policy forms, more transparency via additional information on the TWIA website and live broadcasts of TWIA meetings, the funding of an ombudsman program, and the implementation of new claims handling procedures.

To access the 206-page TWIA annual report, click here.

Work on TWIA Loss Damage Estimation Model Continues

A statutory “expert panel” appointed to develop ways of determining whether a cause of loss to TWIA-insured property is wind, waves, tidal surges, or rising waters not caused by waves or surges held a May 29, 2014 public meeting on the progress of the project.

As part of the meeting, panel members discussed recommendations for the damage estimation portion of the model, which is based on building-specific data and wind and surge time histories.

After the panel completes its work, the Texas insurance commissioner will consider the findings and publish guidelines that TWIA must use to settle claims.

The meeting materials are hyperlinked below: