Louisiana is currently in a crisis when it comes to property insurance. You won’t find anyone in the insurance industry who disputes that. You also won’t find many policy holders who haven’t seen huge increases in their premiums.
What’s behind skyrocketing home insurance premiums in Louisiana? If you think it’s all about insurance companies trying to rake in profits, you may want to reconsider.
“I will tell you that I know that the perception is you got greedy companies out there. We have lost money. No company I know of has been making money over the last five to six years, ok? It’s not lining our pockets.
We’re getting hit with losses,” Brian Keefer said.
Brian Keefer is the founder and president of Allied Trust Insurance Company. It’s been writing property insurance policies in Louisiana since 2017. It’s one of nine companies participating in an incentive package by Louisiana legislators aimed at stabilizing a teetering insurance market in the state. In the wake of several hurricanes going back to 2020, more than a dozen insurance providers doing business in Louisiana became financially insolvent. Others pulled out of the state due to the number of claims and payouts. To help attract and retain insurance providers, state lawmakers approved a $45-million incentive package earlier this year. I spoke with Brian Keefer to get his take on what’s happening in the market, why we’re seeing outrageously high premiums and when we may see some normalization on that front. If you’ve been pulling out your hair asking why you have to pay so much more for your homeowner’s insurance, this is a rare window into the operations of one insurance provider. Property owners may not want to hear what Keefer has to say, but he paints a realistic picture of expectations. Listen to the podcast here.
