TWIA could scale back reinsurance following loss funding mandate decrease

TWIA could scale back reinsurance following loss funding mandate decrease

A new law in Texas has significantly lowered the loss funding requirements for the Texas Windstorm Insurance Association (TWIA), shifting the standard from coverage for a 1-in-100-year storm event to just a 1-in-50-year event, meaning it may scale back its purchases of reinsurance and other forms of risk transfer. The Texas House Bill 3689 noted, “The association shall maintain total available loss funding in an amount not less than the probable…

TWIA reinsurance and cat bond tower may shrink as loss funding mandate drops to 1-in-50 year - Artemis.bm

This content is copyright to www.artemis.bm and should not appear anywhere else, or an infringement has occurred. Recent legislative changes enacted in Texas have halved the state mandated calculation for the amount of loss funding the Texas Windstorm Insurance Association (TWIA) is required to have in place, from a 1-in-100 year minimum, down to a 1-in-50 year, which may result in less reinsurance and catastrophe bonds being purchased in 2026. …