Florida’s legislature is meeting to address the state’s insurance crisis, and Louisiana is experiencing a similar fate with policy writers folding or leaving the state.
Louisiana Insurance Commissioner Jim Donelon is hoping for another incentive plan like the $30-million program after Katrina will work again. He said about a half dozen companies participated.
“And they began immediately taking business out of the Citizens’ market of last resort,” said Donelon.
Louisiana lawmakers are waiting to see how much money the Revenue Estimating Conference say is available for such a program. The REC is meeting this week.
Donelon said yes, it’s dire but not as bad as it was after Katrina, and it’s not just that some companies have left the state entirely.
“More than the companies that have left is the companies that have stopped writing, that’s more of an impact on policyholders and consumers,” said Donelon.
After Katrina and Rita, Donelon said the state faced a $23.3 billion crisis with a million claims. The last two hurricane seasons total $14 billion and 800,000 claims.
While those without coverage are forced to turn to Citizens the state’s insurer of last resort, Donelon is hopeful incentives will resolve the insurance crisis.
“Primarily through the incentive program, to get funded sooner rather than later, and depopulate Citizens and attract companies to our market to write even those who are not in Citizens today,” said Donelon.
At least 10 insurance companies have left Louisiana in the last year.