Donelon proposed setting apart $45 million for an incentive fund beforehand established by lawmakers, to entice as much as seven insurers to begin writing insurance policies in Louisiana.
“Insurance coverage Commissioner Jim Donelon has careworn that funding the Insure Louisiana Incentive Fund can not wait till the common session in April,” mentioned Edwards. “I’m grateful for the cooperation of the Senate President and Home Speaker and the legislature in calling this particular session centered on this Fund.
“Whereas Commissioner Donelon says we should do that now, that is only a first step in addressing Louisiana’s ongoing insurance coverage points after the devastating hurricane seasons of 2020 and 2021, a disaster worsened by hurricanes and wildfires in different states in 2022.”
The particular session will likely be held from January 30 to February 05, native Louisiana information outlet WAFB Channel 9 reported.
Edwards and Donelon’s considerations aren’t unfounded. Final 12 months alone noticed eight insurers exit of enterprise, whereas a number of others had knowledgeable clients that they might cease writing new enterprise in Louisiana. The surge of insured losses from hurricanes over the previous years has additionally contributed to the state’s deteriorating insurance coverage market.
So troubled is the house insurance coverage market in Louisiana, that the state’s insurer of final resort Residents Property Insurance coverage can be being overwhelmed. Donelon final week defined that Residents covers about 125,000 households – simply over twice the estimated 65,000 it will probably realistically deal with – and that shoppers with Residents are dealing with premium hikes of as much as 63%.
Louisiana was just lately ranked tenth costliest state for residence insurance coverage in a nationwide examine carried out by Clearsurance. In response to the examine, the typical insurance coverage charge within the state for a $200,000 residence was $1,736. By comparability, householders in Hawaii – the state with essentially the most inexpensive residence insurance coverage charges – pay solely $327 for a $200,000 property.