The Louisiana Governor's Office and state lawmakers will discuss a possible special legislative session in early February to deal with the exodus of insurance companies from Louisiana and how to bring new insurers here. Commissioner of Administration Jay Dardenne says a meeting is scheduled Wednesday between the governor and state house & senate leaders.
“It would be called for the sole purpose of addressing the homeowners insurance crisis and an attempt to get some policyholders off of the citizen Insurance and into private insurance,” said Dardenne.
The combined hits of two hurricanes in 2020, plus Hurricane Ida in 2021 and a major flood event in 2022 have caused a number of property insurers to either go insolvent of leave Louisiana altogether. Dardenne says the proposed special session would be so lawmakers can approve using surplus revenue for an incentive fund to attract new insurers to come here. Dardenne says this is the time of year when insurers are lining up their re-insurance (insurance for insurers) and Louisiana needs to act fast, to be part of their plans.
“We need to act more quickly so that we can get the benefit of re-insurance available to insurers who choose to write these policies,” said Dardenne.
Louisiana had success with a similar fund after hurricanes Katrina and Rita gutted the market in 2005. Insurance Commissioner Jim Donelon says it will work again, if the state acts quickly.
