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Louisiana Families Feeling Pain of Insurance Crisis, Survey Shows

June is the beginning of the hurricane season and the end of the legislative session in Louisiana. As storms form in the gulf, big insurance companies continue to push industry-friendly legislation that disadvantages consumers, making it easier for insurance companies to raise costs, delay claims, and ultimately deny storm victims the money they need to rebuild their lives.

Louisiana desperately needs real insurance reform that benefits consumers by increasing competition, lowering costs, and increasing accountability for big insurance companies. Louisiana families are hurting, as evidenced by a recent survey conducted by the Reilly Center for Media & Public Affairs at LSU.

63% of Louisiana homeowners report that the cost of insurance increased. Only 3% reported paying less for homeowners insurance. Nearly 7 out of 10 respondents said insurance in Louisiana costs more than in other states.

17% of Louisiana homeowners report that their insurer canceled their policy over the past year. That's nearly one-fifth of every Louisiana adult reporting that their homeowner's insurance coverage was canceled. Over half (55%) of the Louisiana homeowners who tried to find an insurance policy last year experienced difficulty getting coverage.

Roughly 1 in 5 adults have filed a property, flood, or renters insurance claim in the past two years, which accounts for 29% of all Louisiana policyholders. 48% of policyholders report dissatisfaction with how their insurance company handled their claims.

Louisiana families are also frustrated with broken promises. Two years ago, we were promised tort reform would lower automobile insurance rates. But only 10% of auto insurance policyholders reported paying less in the survey, while a plurality (43%) reported paying more.

Now, the same people that promised tort reform would lower auto insurance rates are pushing the same false promise about property insurance. Tort reform will not lower home insurance premiums, as evidenced by the spiraling crisis in Florida.

The Sunshine State has passed several aggressive tort reform packages over the past two years. Yet, Florida's insurance rates are four times higher than the national average and insurance companies are defrauding policyholders at an alarming rate.

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Big Insurance's Louisiana Boondoggle.

By Ben Riggs • February 18, 2025

Big Insurance's Louisiana Boondoggle. Former Missouri State Insurance Commissioner Jay Angoff recently testified before the Louisiana Senate Judiciary A Committee. The former commissioner reviewed data provided by insurance companies to the National Association of Insurance Commissioners (NAIC). The hearing and most of the data presented focused on personal and commercial auto insurance. A key takeaway on personal auto from the NAIC data was that Louisiana's insurance market is competitive and profitable. This revelation was particularly interesting because it undercuts Commissioner Tim Temple's analysis of the Louisiana insurance market and his legislative agenda. Commissioner Temple has repeatedly stated: "If we get more companies in Louisiana, then that helps solve issue number one which is availability. Once you have more companies in Louisiana, that helps work on problem number two which is affordability.” Yet, the data presented by former Commissioner Angoff painted an entirely different picture.

Expert, Former Commissioner Testifies on Louisiana's Insurance Market.

By Ben Riggs • February 18, 2025

Expert, Former Commissioner Testifies on Louisiana's Insurance Market. Former Missouri State Insurance Commissioner Jay Angoff recently testified before the Louisiana Senate Judiciary A Committee. The former commissioner reviewed Louisiana’s insurance regulations, other states’ laws, and information provided by insurance companies to the National Association of Insurance Commissioners (NAIC). Mr. Angoff provided a detailed, data-filled report on Louisiana's insurance market. He explained how lax regulations that make Louisiana an extreme outlier contribute to high insurance rates. Additionally, he discussed the high returns insurers are seeing on policies in Louisiana and the massive profits rolling in on investments on their $1 trillion surplus. Below are highlights from the hearing and a copy of Mr. Angoff's complete report and testimony.

Major Change in Louisiana Law Threatens to Worsen Insurance Crisis sent

By Ben Riggs • February 18, 2025

New U.S. Senate Report Shines Light on Louisiana's Insurance Crisis. In 2024, Commissioner Tim Temple and lawmakers repealed a crucial safeguard for Louisiana policyholders, allowing insurers to cancel home insurance policies at will. This alarming change took effect on January 1, 2025, leaving policyholders vulnerable. Why is this important: The increased threat of severe weather has led to a rampant increase in non-renewals nationwide. The New York Times reports that "since 2018, more than 1.9 million home insurance contracts nationwide have been dropped. In more than 200 counties, the nonrenewal rate has tripled or more." This is all according to findings in a new report from the U.S. Senate Budget Committee. T h e report notes that "Florida and Louisiana — the top two states by non-renewal rate in 2023 — also experienced 280% and 267% increases, respectively, in non-renewal rate percent change from 2018 – 2023." Lafourche, Terrebonne, and Jefferson Parishes have among the highest non-renewal rates in the nation for 2023. Orleans, Terrebonne, and Tangipahoa Parishes have suffered among the largest increase in non-renewals.

“A Deliberate Scheme” - Insurance Companies Caught Cheating Storm Victims

By Ben Riggs • October 1, 2024

Insurance Companies Caught Cheating Storm Victims

Report: Louisiana Pays Higher Premiums Due to Weak Consumer Protections

By Ben Riggs • July 10, 2024

Are Louisiana Policyholders Subsidizing Insurer Profits in California with High Premiums?

Insurance Industry: "Credit Scores" Among Reasons for Louisiana's Rising Insurance Costs.

By Ben Riggs • February 16, 2024

Insurance Industry: "Credit Scores" Among Reasons for Louisiana's Rising Insurance Costs. A new report shows that auto insurance rates are skyrocketing, rising by 26% across the U.S. On average, Louisiana drivers pay $2,909 annually, roughly 6.53% of their income for auto insurance. Wayne Watley at Watley Insurance Group lists “credit scores” among the reasons for Louisiana’s rising auto insurance costs, including poor roads and uninsured motorists. Mr. Watley goes on to say, “It’s a challenge because we’re not one of the richest states, but we have some of the highest premiums.” He is correct—and the data backs him up. Insurance companies use credit scores to determine insurance rates for policyholders. Louisiana ranks 48th in median household income and 49th in average credit score . According to a recent study , safe drivers in Louisiana with poor credit pay 111% more than safe drivers with excellent credit ($1,505 / $713). Consequently, Louisiana has the second-highest auto insurance rates in the nation, which leads to more uninsured motorists, another primary cause of higher insurance rates. The use of credit scores in rate setting also creates perverse incentive structures that make Louisiana roads less safe. In Louisiana, safe drivers with poor credit pay an average of $905 more than drivers with a DWI and excellent credit ($3,548 / $2,643). Meanwhile, traffic fatalities increased by 21% from 2019 to 2022 in Louisiana, and the fatality rate per 100 million vehicle miles traveled increased by 18%, according to KPLC . Louisiana desperately needs real insurance reforms that lower costs, protect consumers, hold insurers accountable, and make our roads safer.