Louisiana Democratic Gov. John Bel Edwards has referred to as a Particular Session to handle the state’s rising property insurance coverage disaster with a deal with implementing a $45 million incentive fund to draw corporations to jot down new insurance policies.
The week-long session will convene at midday Jan. 30 and should adjourn no later than 6 p.m. Feb. 5.
Republican Insurance coverage Commissioner Jim Donelon has been lobbying arduous for both the governor or Legislature to name the Particular Session to fund this system.
On Friday he addressed the Joint Price range Committee, saying, “Persons are actually going to lose their homes if we do not have a Particular Session.”
Louisiana owners have confronted dramatic insurance coverage value will increase triggered by the huge injury attributable to Hurricane Laura in 2020 and Hurricane Ida in 2021 in the event that they’re capable of finding protection in any respect on the non-public market.
The decreased availability has pushed tens of 1000’s of shoppers to the state-sponsored insurer of final resort, Residents, which final yr elevated charges by greater than 60%.
Donelon stated a minimum of seven new insurers have instructed him they’re fascinated with getting into the market by means of the inducement program whether it is funded and carried out.
The commissioner stated that can assist scale back Residents’ rolls.
Donelon instructed lawmakers and Edwards, who had most well-liked to attend till the common session starting April 10 to handle the disaster, {that a} delay would restrict the effectiveness of this system as a result of insurance coverage corporations have to plan for getting their very own insurance coverage to match new enterprise earlier than hurricane season begins in June.
“Insurance coverage Commissioner Jim Donelon has harassed that funding the Insure Louisiana Incentive Fund can not wait till the Common Session in April,” Edwards stated in an announcement.
Donelon has conceded the inducement program is a short-term resolution to the rapid disaster, however extra should be carried out throughout the Common Session when there’s extra flexibility and time.
“Whereas Commissioner Donelon says we should do that now, that is only a first step in addressing Louisiana’s ongoing insurance coverage points after the devastating hurricane seasons of 2020 and 2021,” Edwards stated. “We are going to proceed to work on this difficulty throughout the Common Session starting in April.”
Hurricane Laura and Ida generated a mixed 800,000 insurance coverage claims totaling $22 billion, inflicting eight insurance coverage corporations to fail and different corporations to cease writing new enterprise beneath Interstate 10.
The variety of prospects in Residents has quadrupled throughout the previous two years. By regulation, Residents’ costs should be 10% above the best market charge in every parish or the actuarial charge, whichever is increased.
Greg Hilburn covers state politics for the USA TODAY Community of Louisiana. Comply with him on Twitter @GregHilburn1
