AUSTIN, Texas--(BUSINESS WIRE)--The Texas Windstorm Insurance Association (TWIA) is pleased to announce an important milestone has been passed in the Assumption Reinsurance Depopulation Program (Assumption program). The agent review period concluded on October 31, and 18,000 policies were approved by agents for possible transfer from TWIA to participating private market insurers. Participating companies include Maison Insurance Company, United Property & Casualty Insurance Company, Weston Insurance Company, and The Woodlands Insurance Company. This is the first time this kind of depopulation program has been implemented in Texas, but similar programs are already being used successfully in Florida and Louisiana to transfer policies from the residual market back to the private market.
TWIA and the participating companies will present offers to TWIA policyholders beginning December 1, 2016. Policies will automatically transfer to participating companies on June 1, 2017. Policyholders may choose to remain with TWIA by opting out of the program by May 31, 2017.
“Depopulation will help TWIA’s financial stability by reducing its overall exposure to catastrophes by more than $5 billion. The increased competition in the insurance marketplace as a result of the participating depopulation companies will benefit all Texas policyholders,” said TWIA Chief Actuary James Murphy.
Depopulation is a series of programs authorized in 2015 by the 84th Texas Legislature and is designed to provide more choice for wind and hail coverage to policyholders in the private market. TWIA provides policy data to participating insurers who then make offers to assume, or transfer, TWIA policies. Acceptance of any offers by agents and policyholders is completely voluntary.
“We are very pleased with the success of the Assumption program to date, and part of the success of this program is thanks to the participating companies and agents,” said TWIA General Manager John Polak. “We understand that simply by fact of where they live, many Texas coast residents have not had a choice other than TWIA, and we are happy to be part of facilitating more choices for wind and hail coverage in our coastal communities.”
About the Texas Windstorm Insurance Association
The Texas Windstorm Insurance Association (TWIA) was established by the Texas Legislature in 1971 in response to regional market conditions following Hurricane Celia in August 1970. Our mission is to efficiently provide essential property insurance products and services for eligible Texas properties when no one else will. For more information, please visit www.twia.org.