AUSTIN - The Texas Windstorm Insurance Association's Actuarial & Underwriting Committee met on Jan. 11 and voted to recommend the TWIA Board establish $5.244 billion as the Association’s 1:100 probable maximum loss (PML) for the 2023 storm season, a press release states.
The 1:100 PML specifies the minimum amount of reinsurance needed to meet the Association’s statutory funding obligations.
The Committee considered catastrophe model results presented by Aon, TWIA’s catastrophe modeling vendor, before making its decision. The Committee voted to recommend the TWIA Board take the average of two different catastrophe models, AIR and RMS, use the model results based on long-term assumptions, and include loss adjustment expenses in determining the 1:100 PML for this year’s storm season.
The Committee is expected to present its recommendations to the TWIA Board when it meets on Jan. 19 to determine the Association’s statutorily required 1:100 PML for the 2023 storm season.
The meeting materials and archived recording for the Committee meeting are available on TWIA's Archived Meetings page.