As the state aims to find a way to repair its current crisis, it is making sweeping changes
Louisiana residents are about to see a number of widespread changes to home insurance in the state as the new commissioner Tim Temple aims to fix the crisis in the state.
Temple is determined to correct the state’s crisis
“Louisiana has a very heavy-handed regulatory reputation,” said Temple. “We’re changing that.” Last week, he outlined a number of sweeping changes to the home insurance regulations in the state, making it possible for insurers to increase their rates more easily, boost profits, and self-report when it comes to certain violations. The goal is to bring some stability to the struggling market.
Home insurance changes are already in the works
There are already certain proposals that have been put into effect, while some changes still require the Legislatures approval before they can move forward in the spring. On the whole, the new strategy is a sizeable effort to reduce regulation and raise the appeal of the state’s market to insurers, building competition so that rates will eventually drop.
Temple announced his intended changes during a speech in front of business executives as well as at a news conference.
Tackling the crisis
The state’s heavily Republican Legislature has been facing a coverage crisis that has been very challenging to their constituents. Equally, consumer advocacy groups aren’t likely to want to move forward with regulatory reductions that are likely to raise prices and decrease coverage in the near term.
Louisiana has been facing a growing home insurance crisis for years, particularly after 2020 and 2021 saw massive damage from hurricanes, causing a dozen insurers to go bankrupt while others stopped selling in the state. Property owners have been crying out for change as they face skyrocketing premiums for their required coverage.
The insurer of last resort
The state-run insurer of last resort, Citizens, is required to charge more for coverage than the private market, in order to provide consumers with an option but only when all others on the private market are unavailable to them. That home insurance company has grown by 94,842 policies since Hurricane Ida struck the state, representing a spike of 244 percent.
