The Texas Windstorm Insurance Association (TWIA) announced it has purchased $636 million in reinsurance protection. The policy will cover losses that exceed the $1.6 billion in funds estimated to be available from the Association’s Catastrophe Reserve Trust Fund and bonds.
The purchase of reinsurance was made at the direction of the TWIA board of directors at their meeting on May 20, 2011. The net cost of the purchase was slightly less than $100 million and will be paid from premiums received by TWIA in 2011 and 2012. The policy is in effect from June 1, 2011 through May 31, 2012, but effectively covers the 2011 hurricane season.
TWIA purchased the reinsurance from 47 different reinsurance companies worldwide. The purchase was brokered by Guy Carpenter & Company LLC.
The Texas Windstorm Insurance Association (TWIA) is the state’s insurer of last resort for wind and hail coverage in the 14 coastal counties and parts of Harris County (east of Highway 146).
Source: TWIA
Topics Catastrophe Natural Disasters Texas Windstorm Reinsurance
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