Dewhurst Wants to Shut Down the Texas Windstorm Insurance Association

| September 13, 2014 | 0 Comments

dewTexas Lt. Gov. David Dewhurst urged a state senate committee on Tuesday to explore shutting down the state’s coastal windstorm insurance provider, saying if Texas ever was hit with severe hurricanes in a single year, the state could be on the hook for the billions of dollars in claims.

In a statement Dewhurst said, “I’m sure most Texans have no idea the State of Texas not only has windstorm liability of up to $77 billion, but worse, has become a direct competitor to private-sector insurance companies, disrupting market-driven pricing and undermining TWIA’s financial health.”

Dewhurst said he’d like the Senate to come up with a strategy next year that involves moving customers from the association into the commercial market over a 3 to 5 year period term.

State Representative Todd Hunter, who has been fighting the windstorm hikes, said, “”It would be great to have the private insurance industry provide commercial and residential insurance, but we need to hear some proposals on how to get the private insurance industry to provide insurance in the coastal zone,” according to a recent interview with the caller times.

Earlier this year, State Rep. Todd Hunter unveiled proposed legislation that would make the Texas Department of Insurance more transparent. The bill would require that hikes in insurance would require public notice with a justification, explanation and cost estimate. The bill would also require that the department disclose information about staff hiring’s, show where the certain rate changes might occur and disclose on its website who meets with the Texas Insurance Commissioner in discussing certain insurance issues.

The windstorm association started in 1971 to provide windstorm and hail coverage for those who could not get it elsewhere. The association covers about 60 percent of the 14 residential coastal communities.

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Category: State Rep. Todd Hunter, Texas Windstorm, Texas Windstorm Insurance Association

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