Louisiana Advances Insurance Reform Bills to Ease Pricing Pressure
The Louisiana House Committee on Civil Law and Procedure has taken a significant step forward in the state’s ongoing insurance reform discussions by advancing a set of automobile insurance-related bills. This development follows recent press briefings held separately by Governor Jeff Landry and Insurance Commissioner Tim Temple ahead of the legislative session.
Caitlin Murray, regional vice president for the Southeast region of the National Association of Mutual Insurance Companies, expressed industry support for addressing litigation-related concerns. “Lawmakers should also focus on ways to attract more insurance capital into the state,” Murray said, as reported by Best Wire.
While both Landry and Temple emphasized the need to address issues such as legal abuse and distracted driving, they had differing opinions on certain matters. Landry advocated for limiting the use of credit scores in underwriting, a position that has faced resistance from insurers who argue it impairs risk-based pricing.
Key Provisions of the Proposed Legislation
Of the six bills approved by the committee, two tort reform-focused bills have garnered significant attention. House Bill 34 proposes revising how medical damages are presented in personal injury cases. Currently, juries can only see the amount billed for services, not any negotiated payments or actual amounts paid. The proposed legislation would allow jurors to consider both figures, providing a more comprehensive view of actual medical costs incurred.
Mark Friedlander, senior director of media relations at the Insurance Information Institute, highlighted House Bill 431, which would amend Louisiana’s comparative fault system. The bill suggests that if a plaintiff is found to be at least 51% responsible for their own injuries, they would no longer be eligible for compensation. Under existing law, damages are reduced in proportion to the plaintiff’s share of fault, but awards are still possible unless the plaintiff is fully at fault.
Addressing Insurance Landscape Improvements
These proposed changes come as Louisiana continues to report improvements in its insurance landscape. According to Temple, insurance reforms enacted by the Louisiana legislature in 2024 are contributing to market stabilization. Notable improvements include 10 new homeowners’ insurers entering the state and a decline in both costs and the frequency of rate filings.
Temple reported that approved homeowners’ insurance rate increases in 2024 averaged 6.6%, down from 14% in 2023 and 16.2% in 2022. In commercial multiperil lines, average rate increases slowed to 3% in 2024 from 6.7% the previous year. Fire and allied line rate increases averaged 1.8% in 2024, down from 5.8% in 2023.
The image shows Insurance Commissioner Tim Temple, a key figure in Louisiana’s insurance reform efforts.
The reforms aim to address the rising number of legal claims stemming from aggressive advertising by personal injury attorneys and the resulting increase in lawsuits. As the legislation progresses, stakeholders will be watching closely to see how these changes impact Louisiana’s insurance market.
