Louisiana lawmakers are asking whether or not the large insurance coverage fixes they handed earlier this yr are literally making a distinction. With premiums nonetheless sky-high and insurance coverage carriers gradual to return to the market, they’ve referred to as for a radical check-up on the state’s insurance coverage well being.
In a decision handed through the 2025 legislative session, officers requested the Division of Insurance coverage to run a two-year examine, monitoring whether or not the reforms have made Louisiana extra aggressive and less expensive for each insurers and policyholders. The concept is easy: extra competitors, fewer lawsuits, and a extra predictable authorized panorama may make it simpler for insurance coverage corporations to do enterprise right here—and make it cheaper for residents to remain insured.
The decision, often called Senate Concurrent Decision No. 60, displays years of frustration with excessive prices and restricted protection, notably in owners’ and auto insurance coverage. Lawmakers pointed to what they see as a historical past of extreme litigation that’s pushed up declare bills and compelled insurers to boost charges or go away the state altogether. By curbing these authorized pressures, they hope to see decrease prices for carriers and, ultimately, for customers.
To seek out out whether or not that’s occurring, the examine will monitor dozens of indicators from July 1, 2024, to November 1, 2026. The Division will have a look at what number of insurance coverage corporations are attempting to enter the market, what number of succeed or are denied, and what number of are actively writing insurance policies. They’ll additionally tally up how typically corporations ask to boost or decrease charges, and what number of complaints are available from customers.
The decision additionally requires a deeper dive into nationwide rankings that measure how pleasant a state’s authorized and regulatory atmosphere is for insurers. Officers are hoping to see Louisiana climb in these standings. The Division will likely be utilizing knowledge from large trade sources like ISO Verisk and S&P International to comply with month-to-month adjustments in common premiums, claims dealing with, and whether or not insurers are pulling merchandise or increasing choices.
However this isn’t nearly numbers. The Division has additionally been requested to jot down up a story that connects the dots—what’s working, what’s not, and which of the 2025 reforms have had probably the most impression. If some knowledge isn’t out there, the company is allowed to fill within the gaps with different related data to make sure a whole image.
The ultimate report is due by the top of 2026 and will likely be offered at a joint assembly of the state’s Senate and Home insurance coverage committees. Lawmakers need the Division to incorporate coverage ideas too, in case extra fine-tuning is required to maintain the market on a greater path.
For a state that’s been hit onerous by storm injury, service exits, and charge hikes, the hope is that this effort can lastly convey some long-term stability. Whether or not it does, effectively, that’s what they’re looking for out.
