According to a new Triple-I report, Louisiana’s property & casualty (P&C) insurance market recorded its first broad rate relief of the decade in 2025.
However, significant headwinds remain, with legal system abuse continuing to be deeply embedded in the state’s claims environment, meaning sustained legislative action will be essential to make insurance reliably affordable for Louisiana families and businesses, Triple-I’s CEO said.
The new members-only Issues Brief from Triple-I found that P&C premium rates across all lines combined fell by an average of 0.4% statewide in 2025, reversing a pattern of consistent increases from 2021 through 2024.
“The most dramatic improvement came in private passenger auto, where premiums dropped an average of 5.8%, generating a statewide reduction of more than $340 million,” Triple-I said.
According to the report, the broad-based improvements reflect a decline in accident frequency and the early benefits of legislative reforms aimed at curbing legal system abuse.
These recently enacted measures, often referred to as tort reform, have reshaped the state’s litigation landscape by implementing stricter limits on attorney advertising, reining in third-party litigation funding, and lowering the threshold for jury trials.
Meanwhile, homeowners insurance rates continued to rise, but at a substantially slower pace.
Triple-I said premium rate growth slowed to 4.6% in 2025, down from 10.4% in 2023. Nine rate decreases were filed by homeowners insurers in 2025, the highest number since 2020, while 17 new insurers have entered the state’s homeowners market since 2024, increasing competition.
Despite the positive trend, however, Triple-I said significant headwinds persist.
“Louisiana’s personal auto claims litigation rate remains more than twice the U.S. average, and bodily injury claims run nearly double the national norm. Legal system abuse, including misuse of assignment of benefits, rampant claim fraud and third-party litigation funding (TPLF), continues to inflate costs for policyholders,” the report said.
Sean Kevelighan, CEO of Triple-I, commented, “The data show that legislative reform works. But the work is far from finished in Louisiana.
“Legal system abuse remains deeply embedded in the state’s claims environment and sustained legislative action will be essential to making insurance reliably affordable for Louisiana families and businesses.
“Resilient homes mean fewer claims, lower losses and ultimately lower premiums. Programs like Louisiana Fortify Homes demonstrate how strategic investment in mitigation can attract more insurers to a market and broaden coverage availability. It is a model other states should study closely.”
Louisiana Insurance Commissioner Tim Temple observed, “I am not satisfied with where rates are today and expect the reforms we’ve made in recent years to reduce costs for all insurers.
“My priority for 2026 is to continue improving the insurance market by protecting consumers and increasing affordability and long-term availability across the state.”
