September 9, 2014 5:13 PM

Dewhurst calls for phasing out Texas Windstorm Insurance Association

Tells Senate B&C the $77 billion liability too heavy to carry going forward

Lt. Gov. David Dewhurst on Tuesday told the Senate Business and Commerce Committee, under its new chairman Sen. Kevin Eltife, R-Tyler, that the state should phase out and end the insurer of last resort for property owners along the Gulf Coast.

After making a surprise appearance at the committee’s hearing today, he issued this statement to the press about the Texas Windstorm Insurance Association

"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. Should Texas, God forbid, endure two targeted Category 5 hurricanes in a single year, the impact on the state budget from claims on TWIA’s $77 billion in coverage could be devastating. I've charged the Senate Business & Commerce Committee to consider options to address TWIA, which could include phasing it out. I encourage the Senators to explore ways to carefully move Texas coastal policy holders to commercial insurance carriers over time, thus avoiding a rate shock and reducing the risk of a massive financial tsunami to Texas taxpayers."