Aug. 1—Louisiana Insurance Commissioner
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.
Donelon declined to commit to the details of the request, although he said the state is providing it
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.
Silent since the mid-2000s, the Insure Louisiana Incentive Program offers matching funds anywhere from.
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
Donelon called the current market “a crisis” of affordability. He said 50,000 homeowners should turn to
“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
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.
“Their reinsurers have been paying the bills –
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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