A special session of lawmakers in Louisiana has been called to address property insurance concerns in the state, partly stemming from the affordability of reinsurance cover.
The session would follow those held in Florida last year, which saw legislators agree to billions of dollars worth of reforms and funding in an effort to relieve pressure from the beleaguered market.
In Louisiana, the session will focus on trying to set up a fund to help entice more insurers back into the local market.
However, Governor John Bel Edwards, who issued the call for the statement, noted that the meeting would only represent “a first step in addressing Louisiana’s ongoing insurance issues.”
Further efforts will be made during the regular session beginning in April, he added, but agreed with the case made by Louisiana Commissioner of Insurance Jim Donelon, that funding for certain projects can’t be delayed that far.
Specifically, Edwards and others are hoping to appropriate funds to the Insure Louisiana Incentive Fund, a fund created in the 2022 legislative session with the goal of attracting more insurance companies to Louisiana.
“Commissioner Donolen has stated that time is of the essence with regard to the legislature’s funding of the incentive program and thus the need to go into a special session,” said Senate President Page Cortez. “While we understand this will not completely solve the crisis we recognize the urgency.”
Donelon previously told a legislative committee meeting on January 20th that as many as 7 insurers could be interested in an incentive scheme, but that there are no guarantees that any will join, as opinions could be swayed by fine details, as well as by the cost and availability of reinsurance.
House Speaker Clay Schexnayder further commented: “While a special session to fund the Louisiana Incentive Fund is not going to solve the issue of availability and affordability of property insurance for our citizens, it is a short term band-aid that can be a first step toward a more long term solution.”
“The House will continue to work for a more permanent fix to this situation so that our businesses and property owners don’t have to go through this continuous cycle. We have to attract more companies to write policies in our state. We expect that Commissioner Donelon will make the incentive program work as a temporary fix, but we need to do more to solve the problem.”
Louisiana’s special session is currently set to convene on Monday, January 30th and to adjourn no later than Sunday, February 5th.
