“Coupled with several legislative proposals we will be introducing during the regular session to strengthen the market, these insurers will show the entire industry that Louisiana is a viable destination to do business based on the future.”
House Insurance Committee Chairman Mike Huval has agreed to table a bill during the upcoming regular session that will provide additional funding for the program to help cover the full amount that each company has requested and is eligible to receive is.
alleviating suffering across the country
The turnout is likely to be taken as a positive sign as property owners receive some of the highest bounty in the country.
Louisiana is experiencing its toughest property insurance market since 2005, when Hurricanes Katrina and Rita caused colossal damage. Insured losses from the 2020 and 2021 hurricane seasons have contributed to a mass outflow of insurers across the state, while costs associated with inflation have also proved problematic.
The Louisiana Department of Insurance (LDI) began reviewing applications as they were received and will continue to do so in the coming days, a news conference said.
Because of the strict standards that apply to receiving a grant, there will most likely be several issues that any insurance company must address before it can be recommended to the Legislative Committee for approval, Donelon said.
As soon as the LDI has approved the budget by the Joint Legislative Committee, it will enter into cooperation agreements with the interested companies and award appropriate grants.
If all goes well, companies could be writing policies as early as next month to prepare state residents for hurricane season, which typically begins June 1.
Which insurers have applied for grants from the Louisiana Incentive Program?
Nine insurers have applied for Louisiana’s incentive program and are seeking a combined total of more than $62 million. They are:
- Allied Trust Insurance Company – $6.5 million
- Applied Underwriters – $10 million
- Cajun Underwriters Reciprocal Exchange (CURE) – $5 million
- Constitution Insurance Company – $10 million
- Elevate Reciprocal Exchange – $5 million
- Gulf States Insurance Company – $3.6 million
- SafePoint Insurance Company – $10 million
- SafePort Insurance Company – $2 million
- SureChoice Underwriters Reciprocal Exchange (SURE) – $10 million
Advice for policyholders
The LDI recommended policyholders do the following to ensure they receive a policy that meets their individual needs:
- Contact multiple agents, including in-house and independent agents, to get as many quotes on a new policy as possible.
- Ask an agent to contact Citizens for a quote if you can’t find a policy in the private market.
- If you get a Citizens policy, keep looking for a new policy, as the LDI expects more insurers to start taking out after the launch of the Insure Louisiana Incentive Program this spring. If you cancel and rewrite your Citizens policy with a private company, Citizens will refund any unearned premiums.
- If you have an outstanding claim with UPC, that claim may be transferred to the Louisiana Insurance Guaranty Association (LIGA) for adjustment and payment, if applicable. Continue to contact UPC regarding your claim unless you are notified that it has been sent to LIGA.
Donelon took this opportunity to announce that after 17 years in his current position, he will not stand for re-election and is retiring from his career in politics. At 78, Donelon is stepping down to “remove policy from the vitally important upcoming legislative session in which many important issues affecting the future of our state’s property insurance market will be discussed and hopefully decided to improve that market.”
“I have served almost 50 years in the ministry. I want to enjoy the remaining years of my life with my family and hopefully some new hobbies.”
In other news
Louisiana Citizens, the state’s insurer of last resort, is offering an additional 30 days of assistance to policyholders and their insurance agents after the policies of the insolvent United Property & Casualty Insurance Company (UPC) began binding on April 29, or a Citizens’ policy without losing coverage announced this week.