One year after Louisiana’s Republican leaders introduced a series of pro-industry changes aimed at alleviating the state’s home insurance crisis, officials are facing a harsh reality: there are few immediate signs of relief. Insurance rates are not expected to decrease dramatically in the near future, and many homeowners in south Louisiana continue to face the threat of losing their homes due to high property insurance bills. The ongoing legislative session has shifted focus to auto insurance rates, but the issue of homeowners’ insurance remains pressing.
Since the legislative changes were adopted last year, homeowners’ insurance rates have continued to rise for most homeowners. Lawmakers appear committed to maintaining their pro-industry approach, having rejected bills that would have required insurers to disclose more financial information and offer discounts to homeowners with fortified roofs. A broad tax break for homeowners with high premiums also seems unlikely.
Gov. Jeff Landry has expressed frustration with the lack of progress, particularly with Insurance Commissioner Tim Temple, the architect of the insurer-friendly plan. However, Temple and industry groups argue that they are starting to see signs of improvement. A handful of companies have been approved to start writing home insurance policies, and some have filed for rate decreases. Nevertheless, an analysis of state data shows that rate increases continue to outpace decreases.
Temple acknowledged that rates are unlikely to return to pre-crisis levels, stating, “It’s not going to come down as sharply as it increased.” He pointed to signs of improvement, including more people reporting lower premiums and the approval of 10 additional companies to write property insurance in the state. However, he conceded that most Louisianans should not expect falling premiums yet.
The insurance market in Louisiana is heavily influenced by the global reinsurance industry, which has seen prices soar annually since 2017 due to worsening natural disasters. While some insurers have filed rate decreases, the overall trend remains upward. The state’s reliance on reinsurance, which protects insurers against large losses, contributes to higher costs for homeowners.
Lawmakers continue to explore potential solutions, including a possible federal reinsurance backstop to help lower costs. However, Temple has opposed this idea, arguing that the private market can deliver affordable home insurance. The challenge of addressing the insurance crisis remains significant, with no clear resolution in sight.
As the situation stands, Louisianans face a difficult path ahead. Rep. Brian Glorioso, who supported Temple’s package of bills last year, noted, “Realistically, what we’re hoping for is to slow the growth rate. It’s going to be a difficult path absent some coordination with other states on a reinsurance plan or a federal reinsurance plan.”
