TWIA’s commercial policy rates mispriced by 44%: Willis Towers Watson

The Texas Windstorm Insurance Association’s (TWIA) rates for residential policies are inadequate by 26 percent, while rates for commercial policies are inadequate by 44 percent, according to an independent study by Willis Towers Watson (WTW).

TWIA said its actuarial and underwriting committee has forwarded the study to the TWIA board for consideration.

The committee called on WTW and TWIA staff to further model appropriate rate levels ahead of the TWIA board’s meeting on December 8, which will consider the matter.

It stressed it is not making any recommendations to the board on the basis of the WTW study.