For 2024, the funding tower of residual market insurer the Texas Windstorm Insurance Association (TWIA) will see catastrophe bonds as its largest component, providing 32% of the funding limit needed to meet the statutory 1-in-100 year probable maximum loss for the coming hurricane season.
Recall that, back in February the Board of the Texas Windstorm Insurance Association (TWIA) approved a 1-in-100 year PML for 2024 funding purposes at a new high of $6.5 billion, meaning the insurer of last resort needs just over $4 billion in reinsurance limit for the 2024 wind season.
Already TWIA has been making rapid progress in securing that, helped enormously by the catastrophe bond market.
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