TWIA Seeking Preliminary $175M Insurer Assessment for Harvey Losses

The Texas Windstorm Insurance Association is seeking regulatory approval for a $175 million assessment to TWIA’s insurance company members for Hurricane Harvey losses. Harvey made landfall on the Texas coast on Aug. 25, 2017.

The assessment OK’d by the association’s board on May 8 needs Texas Department of Insurance approval before it can be implemented.

TWIA has estimated $1.61 billion in total losses from Hurricane Harvey, up from an estimated $1.44 billion in losses staff presented to the board in February.

Anna Day Stafford, TWIA’s Legislative & External Affairs liaison, said in an email to Insurance Journal that a total assessment of $321 million may be needed. At its July 31 meeting, TWIA’s board will reconsider the assessment and may decide to request additional funds.

TDI has estimated total insured Harvey losses in the state will reach approximately $19.4 billion. That amount includes losses to homes, businesses and vehicles caused by flooding. In an April 12, 2018, update to its Hurricane Harvey data call, TDI reported that information received as of Oct. 31, 2017, shows that Harvey generated about 717,000 claims to private insurers, TWIA, and the Texas FAIR Plan for personal and commercial lines of insurance. That number includes about 387,000 residential property claims and about 207,000 automobile claims. TDI pointed out that while most Harvey claims are for residential property insurance, most losses are from flood and automobile claims.