Louisiana is experiencing the worst insurance crisis in its history, according to Louisiana Insurance Commissioner Tim Temple -- and what's the solution?
Louisiana had a property crisis after Hurricane Katrina, but this time around 12 companies going insolvent and dozens more leaving the state has caused another crisis, Temple said on the Newell Normand show. Throw a commercial property and auto insurance crisis on top of that, plus flood insurance issues, and that's where Louisiana is.
"This has impacted the entire state," Temple said. "This is as bad as it's ever been."
Temple is developing a legislative package to try to help the issue and it's designed to bring Louisiana in line with other states. He said the goal is to reform existing laws and regulations so the industry has more predictability in doing business in the state.
And to make those businesses compete for customers in a free market like they do in other states.
"(Other states) are constantly reforming and evolving and that's what we're asking citizens and Louisiana legislators to support," Temple said, adding the goal is make Louisiana a state where insurance companies want to operate.
Insurance Commissioner Tim Temple said he wants to change the three-year rule, which prevents insurers from dropping certain customers if they've been with the company for less than three years.
Temple said he also wants to create a clear, fair claims process so families can educate themselves on Louisiana statutes so they know their rights.
Temple's plan, in detail, calls for modernizing the rate and form process, providing more guidance to industry and consumers about Louisiana statues. Allowing insurers to self-report and address minor violations that do not have any negative impact on consumers. Also amending the three-year rule to allow insurers to make changes to ensure they are effectively managing their risk. And providing guidelines for the appraisal process to 'better protect all parties that use it as an alternative to litigation.
