The Texas Windstorm Insurance Association (TWIA) expects policy count to continue to grow in 2024, the association’s Board of Directors said at an Oct. 31 meeting to review information related to the 2024 budget.
Policies in-force are projected to increase in 2024 to nearly 265,000 by year end, while direct written premiums are projected to grow to more than $815 million.
The draft 2024 budget presented to the TWIA Board projects net operating expenses to grow to $40.2 million compared to $35.2 million in the 2023 budget. The association’s budgeted expense ratio (operating expense divided by earned premiums) will fall from 6.5% to 5.4%.
TWIA expects personnel costs to rise slightly to meet demands of the association’s higher policy count. TWIA said it will continue a recent initiative of converting certain positions from contractor to employee status for long-term cost savings.
TWIA intends to make a significant financial investment in 2024 in migrating underwriting, claims, and related systems to the cloud to enhance data security and reduce long-term costs.
The TWIA Board will consider final action regarding the budget at its Dec. 12 meeting in Corpus Christi.
Topics Trends
Was this article valuable?
Here are more articles you may enjoy.
Damage From Hurricane Beryl May Cost Insurers $2.7B in US, $510M in Caribbean: KCC 
Insurers Hike Rates as Extreme Storms Like Beryl Proliferate 
Homebuilders Cut on ‘Sluggish’ Housing Market, Florida Woes 
Progressive Q2 Net Income Skyrockets Over 320% 
