The Texas Windstorm Insurance Association (TWIA) will leave its rates unchanged for 2026 following a vote by its board of directors.
The decision aligns with recommendations from the association’s Actuarial and Underwriting Committee, which cited improving rate adequacy and limited projected financial impact from potential increases.
The committee’s analysis, issued in July, indicated that achieving full rate adequacy would require a 3% increase in residential rates and a 5% increase in commercial rates for the year.
However, the committee determined that the gap was narrowing and that raising rates at this time would provide limited additional benefit to TWIA’s overall financial position.
For the first time since 2008, TWIA’s rate adequacy shortfalls have fallen into single-digit levels – 3% for residential policies and 5% for commercial lines – breaking a long-standing pattern of double-digit deficits. The improvement signals a notably smaller gap between current premium levels and actuarial benchmarks.
Aaron Taylor, spokesperson for TWIA, previously said that changes in state law have played a significant role in improving rate adequacy. Legislative updates have lowered reinsurance costs by adjusting TWIA’s probable maximum loss requirement from a 1-in-100-year storm to a 1-in-50-year event.
In addition, the state has begun exempting TWIA from premium and maintenance taxes, contributing further to the improved financial outlook.
A new state law passed will bar third-party premium financing for TWIA policies beginning in 2026. Policyholders must instead enroll in no-cost installment plans offered directly by TWIA, eliminating external finance arrangements and aligning insureds with the association’s internal payment options.
During the board meeting on Aug. 5, Texas Rep. Todd Hunter, a Republican representing coastal areas, expressed support for keeping rates steady. He said affordability remains a key concern for residents along the Gulf Coast and in South Texas.
Hunter said the actuary committee reviewed the legislative changes and supported the board’s position to hold rates flat.
Alongside the rate vote, TWIA filled two board vacancies. Texas Insurance Commissioner Cassie Brown appointed Rolando Rubiano, an engineer from Cameron County, to serve as a first-tier coastal representative.
Mark Shewmaker, an investor and government relations consultant from Travis County, was appointed as a representative for non-seacoast territories.
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