The Board of the Texas Windstorm Insurance Association (TWIA) met today and one item up for discussion was the setting of the 1-in-100 year probable maximum loss (PML), a critical figure for defining its funding needs for the hurricane season and therefore its purchases of reinsurance and catastrophe bonds for 2025.
With reinsurance costs having been significantly higher for TWIA in 2024, compared to 2023, this was a significant focus of today’s Board meeting.
Drivers of higher reinsurance costs for TWIA in 2024 were a growing exposure base, harder reinsurance market pricing conditions, and the selection of a higher probable maximum loss figure for funding needs last year.
FULL ORIGINAL PUBLICATION HERE
