The Texas Windstorm Insurance Association’s actuarial and underwriting committee is seeking more data from TWIA staff and an actuarial consulting firm on rate adequacy and catastrophe modeling for potential hurricane losses.
In a meeting on Sept. 22, the committee directed staff to work with Willis Towers Watson (WTW) to gather additional data on the characteristics of properties insured by the association and for WTW to provide an updated and more detailed report to the committee, along with some additional analysis regarding modeling.
At the meeting, WTW presented a summary of its report on rate adequacy submitted earlier this month. The table below shows a comparison between the results of TWIA’s rate adequacy analysis and that of WTW.
TWIA Rate Inadequacy Indications
| Residential | Commercial | |
|---|---|---|
| TWIA 2020 Rate Adequacy Analysis | 44% | 49% |
| Willis Towers Watson Report using WTW-recommended method for projecting Probable Maximum Loss |
32% | 42% |
The committee voted to meet the week of Nov. 30 to review the updated information and report back to the TWIA board of directors, which is scheduled to meet on Dec. 8.
Examples of additional data requested by the committee include:
- Commercial business occupancy data
- Secondary risk characteristics
- Details from inspection reports
- Street-level geocoded data on TWIA policies
Source: TWIA
Topics Catastrophe Natural Disasters Carriers Texas Windstorm Data Driven Hurricane Willis Towers Watson
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