Texas Windstorm Insurance Association reduces reinsurance needs due to fund growth
1 report, 1 independent
Updated Wed 00:00
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What happened
The Texas Windstorm Insurance Association projects it will need to secure around $2.05 billion in reinsurance and catastrophe bonds for 2027, which is approximately 10% less protection than this year. This reduction is attributed to the growth of the Catastrophe Reserve Trust Fund, which is projected to increase from $25 million in 2026 to $350 million for the 2027 renewals.
From artemis.bm
Why it matters
The growth in the Catastrophe Reserve Trust Fund allows the Texas Windstorm Insurance Association to reduce the amount of external risk transfer required for its operations. The Association's Board recently rejected a proposal to revert to buying 100-year protection, maintaining the 1-in-50 year funding level target for 2027.
From artemis.bm