GNO, Inc. head says insurance is a threat to economic growth

GNO, Inc head says insurance is a threat to economic growth
GNO, Inc head says insurance is a threat to economic growth Photo credit Getty Images

Michael Hecht, President of GNO, Inc., talked insurance with WWL's Newell Normand Wednesday.

Hecht spoke about the insurance industry in Louisiana and how it's affecting a number of aspects of life—and not for the good.  He went off on how spiraling prices have the potential of dragging down the economy.

"If we are unable to reign in homeowners insurance costs, combined with what we're fighting on flood insurance, combined with what we're fighting on auto insurance, where we're one of the most expensive in the nation, all of these, I guess you call them costs of doing business start adding up and truly squeezing affordability of Louisianans to live here."

Hecht says the people those most affected are the working class.

"They're the people who get hit the worst, people on fixed incomes, people who's can't expand to meet these rising costs," Hecht says.  "So for flood insurance we're working with our national flood insurance coalition and we're working with out congressional delegation and Congress and FEMA."

Hecht says the aim is put in more guardrails for the ratepayers and trying to bring more transparency to the Flood Insurance market.

"We have to do the same thing with homeowners insurance.  And I think we have to go back to something that was put in years ago, some type of incentive program for insurance companies to come and write in Louisiana."

"The market itself is not working for us," Hecht states.  "Just like the market for flood insurance is not working us as well."

Hecht says the issues posed by insurance, auto, home, and flood, are making it impossible for people to continue to live in Louisiana.

"People need enough well paying jobs to make them money.  So there's a wealth challenge and on the other side we're talking about insurance, there's an affordability challenge."