A Louisiana insurance agent is looking for attractive insurance quotes here [The Advocate, Baton Rouge, La.]

A Louisiana insurance agent is looking for attractive insurance quotes here [The Advocate, Baton Rouge, La.]

Aug. 1—Louisiana Insurance Commissioner Jim Donelon is trying to get state leaders to identify the funds available to support a stimulus program aimed at persuading insurers to sign on. Louisiana to a tough market.

The Insure Louisiana Incentive Program was created in 2006 following hurricanes Katrina and Rita, when major insurers folded and left the market in droves. State lawmakers earlier this year revived the program when insurers went belly-up after the heavy losses from hurricanes Laura, Delta, Zeta and Ida in the past two years. In the past year, seven insurance companies doing business in the state are said to be insolvent.

Donelon said Monday he reached out to schedule a meeting with Gov. John Bel Edwardsand Rep. Mike Huval and Sen. Kirk Talbot, chairmen of insurance committees in their chambers. Donelon has indicated that he is seeking Speaker of the House Clay Schexnayder and Senate President Cortez’s page that too.

Donelon declined to commit to the details of the request, although he said the state is providing it $100 million through a stimulus program in 2006, backed by more dollars from federal taxes and federal subsidies. All that, $29 million he was raptured.

Donelon said that the budget changes later this year would be a good way to determine funding. He added that everything is subject to change based on the Consumer Price Index.

“What we’re asking is the governor and legislative leaders to do what we did well after Katrina and Rita,” Donelon said. Press Club of Baton Rouge.

Silent since the mid-2000s, the Insure Louisiana Incentive Program offers matching funds anywhere from. $2 million to $10 million for insurers who are committed to writing homeowners policies Louisiana. Insurers should be discouraged $2 million those who are to have at least $10 million in fees and residuals available for participation.

After hurricanes in 2020 and 2021 disrupted the public property insurance market, the Legislature renewed the program in this year’s session for homeowners affected by Laura, Delta, Zeta and Ida. Changes included the creation of a dedicated government fund for the program.

Back in 2006, insurers had to write policies Louisiana Citizens Property Insurance Corp.the last state insurance, and they had to give them in the areas of danger, Donelon said.

Donelon called the current market “a crisis” of affordability. He said 50,000 homeowners should turn to Louisiana Citizens Property Insurance Corp. because their insurance companies went bankrupt. The hope is to attract enough insurers here to move policyholders to a cheaper, more comprehensive option.

“When 50,000 people lost their opportunity with these failed companies, they had to go to the end market,” he said. “It is the most expensive – legally – insurance in the state, designed to be (therefore) not an optional market.”

Donelon also expressed concern about a possible “restructuring” in the reinsurance market for businesses that write policies Louisiana. Redlining is a slang term for selecting potential customers. Reinsurance is insurance that they buy to cover their risk.

Losses in the past two years have been significant, Donelon said, and there is talk in the reinsurance industry of a failed company that tried to raise money for the hurricane that fell through. Texas and “went Louisiana unrecognized.”

“Their reinsurers have been paying the bills – $23.3 (billion), $23.7 billion for Laura and Delta, Zeta and Ida – last year and a half, “he said. “That amount of money is difficult. Having said that, they are in a dangerous business. They are in the insurance business. The price will definitely increase depending on the cost of reinsurance, but the companies will return to the market, no doubt about it. “

Huval, R-Breaux BridgeHe said he had never heard of Donelon but was looking forward to meeting him and other leaders.

Huval, an insurance agent, said the Insure Louisiana Incentive Program helped him find insurers back in 2006 to write policies for his clients. He said the policy will help consumers by increasing the number of insurances in the market.

“We need it more now than ever,” Huval said.

The big question for government leaders, Mr. Huval said, will be determining how much money is needed now.

“It’s been a while,” he said. “Will the same amount fill the same interest rate? Do we need more? Do we need less? How much do we allocate to each company?”

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