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TWIA Board confirms new PML with ~$4bn reinsurance & cat bonds needed

The Board of the Texas Windstorm Insurance Association (TWIA) met today and has confirmed a 1-in-100 year PML for 2024 funding purposes at a new high of $6.5 billion, meaning the insurer of last resort will seek to require just over $4 billion in reinsurance limit for the 2024 wind season.

The Board were also told that, in order to achieve this significantly larger reinsurance purchase for 2024, the costs are expected to go well over the budget that had been set.

As we reported last week, the Actuarial Committee of the Texas Windstorm Insurance Association (TWIA) had recommended a new blend of model outputs be used to come up with the 2024 PML, which sets the funding limit and provides the target for reinsurance purchasing.


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