Governor of Louisiana, Jeff Landry, alongside Commissioner Tim Temple, Senate Insurance Chairman Kirk Talbot, House Insurance Chairman Gabe Firment, and other lawmakers, signed four insurance reform bills at the State Capitol aimed at stabilising Louisiana’s property insurance market.
Landry expressed optimism, stating, “Our hope is that this package of bills will start to create more balance in the law and in the market such that we can drive the cost of property insurance down so it’s more affordable for our citizens.”
Temple adds, “Louisiana families and businesses have been suffering from skyrocketing property insurance costs since 2020.
“Change does not come overnight, but the signing of these bills is a major step toward reforming Louisiana’s insurance market.”
Among the reforms, SB 323, authored by Talbot, establishes a clear claims process timeline to simplify responsibilities for policyholders and insurers, aiming to reduce unnecessary litigation and streamline legal procedures. It also introduces a cure period to allow parties more time to resolve disputes before resorting to litigation.
Talbot exclaims, “I think this package of bills makes us competitive with other states. That will turn into availability, which should turn into affordability.”
Another bill, SB 295, authored by Senator Heather Cloud, accelerates the speed-to-market for insurance products and rate changes while maintaining regulatory oversight. It updates the Louisiana Department of Insurance’s rate and form filing approval process to a more efficient file-and-use system.
HB 611, authored by Firment, eliminates the three-year rule for new policies, aligning Louisiana with other states and enabling insurers to better manage risk by nonrenewing up to 5% of their three-year policies annually.
Firment emphasises, “I think this is really an important first step, signing this package of bills, in addressing the affordability and availability crisis when it comes to property insurance in Louisiana.”
Lastly, Representative Matthew Willard’s HB 120 removes the sunset for the Louisiana Fortify Homes Program, demonstrating Louisiana’s commitment to long-term resilience by strengthening homes and businesses against future risks.
Temple explains, “The only way to fix our insurance crisis is by creating a stable and predictable market that attracts insurance companies to compete in our state.”
“These bills provide real, proven solutions to the problems that have been plaguing our market,” he concludes.
