“While some may argue that they need to be higher, we need to be mindful that tour coastal region is in recovery. Coastal residents are overburdened as it is,” he said.

To ensure that all claims submitted to the state’s windstorm association’s policyholders can be paid, state law permits the Association to assess member insurance companies if the Association’s funds are depleted.

These assessments may be offset by premium tax credits, which reduces the amount paid by insurers into the state’s general revenue fund.

To date, insurers have been assessed $530 million to pay claims from hurricanes Dolly and Ike. Of that, $230 million is subject to tax credits.

Mark Hanna, spokesperson for the Insurance Council of Texas said the agency agreed the rate increases were needed.

“We agree with Commissioner Geeslin that his decision today to raise both TWIA commercial and residential rates is he first step needed to fund the depleted Catastrophe Reserve Trust Fund,” Hanna said. “We hope that members of the Texas Legislatures will address this problem in a manner that will provide financial stability for the Windpool and its policyholders.”

skoonce@panews.com