“The biennial report reflects a continuing high level of performance, accomplishment, and engagement by both our Board and staff with respect to compliance, operational efficiency, and commitment to policyholders and other stakeholders."
Austin, TX (PRWEB) January 07, 2015
The Texas Windstorm Insurance Association (TWIA) submitted its biennial report last week to the 84th Texas Legislature. The report includes recommendations for legislative changes and highlights the Association’s major achievements since 2011 when the Association came under fire for operational issues stemming from Hurricanes Dolly and Ike in 2008.
Since 2011, the Association replaced the majority of its management team and streamlined its organizational structure and all areas of operation. Under the direction of the TWIA Board of Directors, the new management team has successfully addressed legislative changes, improved operational efficiency, transformed the organizational culture, and increased management controls and accountability. Audits performed by the Texas Department of Insurance and independent external auditors in 2014 have confirmed the effectiveness of improvements and found no material weaknesses or issues in operational or financial controls.
“The biennial report reflects a continuing high level of performance, accomplishment, and engagement by both our Board and staff with respect to compliance, operational efficiency, and commitment to policyholders and other stakeholders. We continue to use all available tools provided by the Legislature to maximize the Association’s financial position and to achieve the best possible use of policyholder funds,” said TWIA General Manager, John Polak.
In addition to the recommendations for legislative change, the report also included the following achievements:
- Addressed 100% of House Bill 3-required changes in TWIA operations
- Projected to contribute over $200 million to the Catastrophe Reserve Trust Fund (CRTF) as a result of 2014 operations bringing the CRTF total to approximately $450 million for the 2015 storm season
- Secured the highest level of funding in 2014 since 2008 with up to $3.85 billion in total funds available to pay claims
- Issued $500 million in pre-event Class 1 public securities to provide immediate claims-paying capacity after a storm and additional protection to Coastal policyholders and residents with no associated impact on rates
- Issued the Association’s first catastrophe bond as part of the overall reinsurance program thereby diversifying and further expanding the Association’s claims-paying capacity
- Developed extensive controls and detailed financial and operational metrics to measure and evaluate performance at every level in the Association
- Enhanced its Catastrophe Plan and contracted with vendors committed to supplying up to 6,626 field adjusters and 745 desk examiners – sufficient to handle claim volume associated with a 100-year event
- Implemented a policyholder claims satisfaction survey which reflects increasingly positive feedback
- Hired an internal auditor to report to the TWIA Board and facilitate informed governance through independent validation of the Association’s compliance and risk management practices
At its August 12, 2014 quarterly meeting, the TWIA Board directed the Legislative and External Affairs Committee to develop potential legislative recommendations for the Board’s consideration. The Committee presented recommendations to the Board for consideration at its December 9, 2014 quarterly meeting. The biennial report to the Legislature includes the recommendations for legislative changes approved by the TWIA Board of Directors, reasons for the changes, and a summary of the Association’s accomplishments and operations. State law requires TWIA’s Board to submit the biennial report to the Commissioner of Insurance, the Senate Committee on Business and Commerce, the House Committee on Insurance, and the Sunset Advisory Commission.
To access the full report, go here: http://www.twia.org/Portals/0/Documents/TWIA_Biennial_Report_84th_Texas_Legislature.pdf.
About the Texas Windstorm Insurance Association
The Texas Windstorm Insurance Association (TWIA) is the state's insurer of last resort for wind and hail coverage in the 14 coastal counties and parts of Harris County (east of Highway 146). TWIA provides wind and hail coverage when insurance companies exclude it from their homeowners and other property policies sold to coastal residents. TWIA employees are committed to promoting hurricane safety and education, together with the development and enforcement of coastal building codes, in an effort to save lives and property. For more information, please visit http://www.twia.org.