Texas Windstorm Insurer: Private Carrier Interested in 60K Policies
The Texas Windstorm Insurance Association (TWIA) announced that a carrier participating in its depopulation program has signaled an interest in around 60,000 policies that currently are on TWIA’s books.
TWIA is the property insurer of last resort for wind and hail along the Texas coast. Last fall it launched its Voluntary Coastal Windstorm Insurance Portal (VCWIP or the Depopulation Portal) in an effort to move properties into the private sector and reduce the association’s overall liabilities.
United Property & Casualty Insurance Co. (UPC) is a Depopulation Portal participating carrier. It announced that it has mailed offers of coverage to the agents of record on nearly 60,000 TWIA policies, as well as information about UPC Insurance and the steps it takes to transfer TWIA policies to UPC Insurance.
In launching the Portal, TWIA stipulated that the current agent on a policy may remain the agent of record either through a direct appointment or through a limited agreement with the new carrier.
According to information on its website, UPC currently write policies in Florida, Massachusetts, New Jersey, North Carolina, Rhode Island, South Carolina and Texas, and plans to expand into more states. Founded in 1999, UPC has a focus in providing homeowners coverage in catastrophe exposed areas.
UPC has been writing actively in Texas since December 2013, according to UPC Insurance President and CEO John Forney.
“Our company has paid claims on 16 separate tropical storms and hurricanes during our 16-year history, while consistently growing our financial strength,” Forney said in the company’s release.
UPC said it plans to offer the same or better coverage as TWIA, including automated renewals, convenient payment plans, improved policyholder rights consistent with the voluntary market, and the financial strength of a reinsurance program that goes up to the 1-185 year level combined with the transparency of a publicly traded company.
TWIA said it is not involved in the offer process.
There are six private carriers currently participating in the Depopulation Portal: Cypress Texas Lloyds; First Community Insurance Co.; Homeowners of America Insurance Co.; Ranchers & Farmers Insurance Co.; United Property & Casualty Insurance Co. and The Woodlands Insurance Co.
The Depopulation Portal is open only to TWIA member companies and their affiliates. Carriers seeking access to the Portal are required to sign both nondisclosure and terms of use agreements before being allowed access.
Related:
- Texas Wind Insurer Launches Depopulation Portal
- Texas Windstorm Insurer Says Finances Are Shaping Up