Lawmakers approve $42 million to bring in 8 insurance firms to Louisiana –

By | March 19, 2023

NEW ORLEANS — Louisiana lawmakers approved a $42 million incentive payment to give the state’s struggling property insurance market a boost.

The money will go to eight insurance companies in an effort to attract more competition to the Louisiana property insurance market.

The money lowers the risk for the insurer, which has agreed to write twice that amount in the new premium and stay in that coverage for five years.

Companies approved on Friday include:

  • Allied Trust Insurance Co.
  • Cajun Underwriters Reciprocal Exchange (CURE)
  • Constitution Insurance Co.
  • Increase Mutual Exchange
  • Gulf States Insurance Co.
  • SafePoint Insurance Co.
  • SafePort Insurance Co.
  • SureChoice Underwriters Reciprocal Exchange (SURE)

“It’s going to stabilize (the market) and the first time we’re doing this after Katrina and Rite, it’s having an impact,” said Louisiana Insurance Commissioner Jim Donelon. “Statewide homeowners insurance increased just 1% annually every those five years.”

Insurance prices skyrocketed in Louisiana after Hurricanes Laura, Delta, Zeta and Ida. A dozen insurers have gone bankrupt and several have stopped writing policies since Hurricane Ian hit Florida in 2022.

As a result, more than 100,000 households had to turn to Citizen’s – Louisiana’s last insurer.

Now, up to 90,000 of those customers can get cheaper plans from the insurer.

“The good news is we are offering $45 million in incentive grants to companies to come write more businesses, new businesses, and take the pressure off Louisiana Citizens, who have ballooned to 135,000 policyholders,” Donelon said.

It won’t lower insurance prices for everyone, but it will still be a relief for thousands of Louisiana residents.

Donelon says some of these companies may even write policies as early as next month.

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