What the Special Insurance Session means for Real Reform Louisiana
January 31, 2023
During October’s joint session of the Louisiana Legislature, Insurance Commissioner Jim Donelon admitted failure in regulating the insurance companies incentivized by a Katrina-era program. Now, in order to provide some relief to our ongoing insurance crisis, we’re one day into a special session of the state legislature where a similar program is likely to be funded.
Donelon has made clear that we must fund this incentive program. Thanks to the budgeting of Gov. John Bel Edwards we have the funds to do so without raising taxes or cutting services - but we need to work toward a long term solution for real insurance reform - when it doesn’t come at an additional cost to the taxpayer.
Donelon created this mess by allowing failing companies to qualify with low standards. Higher standards and better regulation must be put in place to ensure Louisiana does business with providers committed to Louisiana, providers who will treat people with dignity and take on the risky policies all too common in our state.
With the devastation of the storms in 2020 and 2021 and the state of homeowners insurance where it is throughout the state, action is needed now. Donelon has forced our leaders' hands, so if the new program doesn’t result in insurance rates going down & the number of new carriers going up, he should be on the hook for the tab.
