On day two of the Louisiana State Legislature’s special legislative session dedicated to the crisis in people’s ability to find and afford property insurance, lawmakers are expected to hold their first committee hearing to take up a bill formally introduced on day one.
That bill would shift $45 million in excess money to create a new incentive program which the state hopes will attract more insurance firms to Louisiana.
Following multiple hurricanes making landfall in Louisiana in recent years, many insurance companies have gone insolvent. Meanwhile, others have decided that the risk of staying in a state prone to disaster and coastal erosion far outweighs any business benefit.
On Tuesday’s edition of WWL First News with Tommy Tucker, Tommy invited Benjamin Albright to discuss the deep concerns surrounding property insurance. Albright is the CEO of the Independent Insurance Agents & Brokers of Louisiana. He gave his initial reaction to the bill and its proposed incentive programs for insurance companies.
“I do represent agents, not companies, but we think the bill is close to being written very well. There are a few tweaks that we are suggesting. And we think just based on conversations with legislators, they may be able to amend. For instance, the way that it’s written right now, the financial requirements for insurance companies are very tight, and we worry that will prevent companies from actually being able to take advantage of the program. But by and large, we think the program is a good idea,” Albright told Tommy.
Albright says it is a very difficult time in the insurance industry. He told Tommy that insurance companies have lost $13 billion in homeowners’ insurance in Louisiana since 2005.
Compounding those losses, Albright says reinsurance (or the insurance companies themselves rely on to operate) has “tightened up significantly.” Factoring in those and other elements, people seeking property insurance are having a tough time finding and affording the policy they need.
Listen to the whole conversation, including what it means when you’re dealing with a “captive agent” in the insurance industry (Above)
