Firm order terms (FOT’s) for the 2022 traditional reinsurance renewal for the Texas Windstorm Insurance Association (TWIA) suggest an increase of roughly 29% in rate-on-line (RoL), which translates into a spend higher than budgeted, but that is aligned with market conditions and TWIA’s growing program.
At a Board meeting today that is ongoing, TWIA officials heard from their reinsurance broker Gallagher Re, who’s representatives explained that reinsurance costs are on the rise.
As a reminder, TWIA is looking to have roughly $2.04 billion of reinsurance and catastrophe bonds in-force for the 2022 wind season, buying some more protection and with that coverage attaching a little higher up than last year at $2.2 billion and running to $4.236 billion.
FULL ORIGINAL PUBLICATION HERE
