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Much like the weather phenomena that caused the problem in the first place, Louisiana’s insurance woes will likely get worse before they get better.
As Business Report features in its latest issue, the National Oceanic and Atmospheric Administration’s unprecedented forecast for the 2024 hurricane season threatens to intensify an insurance crisis that has already forced some homeowners to forego insurance altogether due to skyrocketing premiums.
And while a handful of bills pushed through the Legislature should attract more insurance carriers to the state, it will feel more like a step backward than a step forward for many policyholders, at least initially, since it makes it easier for carriers to drop riskier policies and raise rates on others.
John Ford, deputy commissioner of public affairs for the Louisiana Department of Insurance, hopes that the legislation—including Act 9 (formerly House Bill 611), which allows companies to drop 5% of their riskier policies, with conditions, and raise deductibles by up to 5% of a home’s value—will attract more carriers to the state and lower insurance rates in the long run.
As for now, the rate hikes show no sign of slowing.
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