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Louisiana Senate Debates Lax Regulation and Excessive Insurance Rates The Senate Insurance Committee met on Friday, March 14th. There was a robust discussion between Senator Royce Duplessis and Insurance Commissioner Tim Temple about the commissioner's authority, following previous testimony that Louisiana's lax laws do not allow the commissioner to reject rate increases for being excessive. This conversation is important because Louisiana is among the most expensive states in the country for insurance, with nearly 10% of median household income going to insurers. The Law The statute in question is LA Rev Stat § 22:1452 (C)(6) , which states that "no rate in a competitive market shall be considered excessive." Furthermore, the statute defines "excessive" as "a rate that is likely to produce a long-term profit that is unreasonably high for the insurance provided." Commissioner Temple's Previous Testimony In a prior meeting of the Joint Insurance Committee , Commissioner Temple stated that "The Department's role is to look at it [rate filing] and make sure the actuary's work matches; that the numbers add up...We look at it to make sure the rate is adequate and not unduly discriminatory...Our role is not to look and determine whether we think it is right or high or low...If you will, it's to check their math." He repeated that sentiment, reading from a written statement to kick off the March 14th hearing, that "my role is to ensure that property & casualty rates are adequate, actuarily justified, and not unduly discriminatory." These comments are consistent with the authority granted to the commissioner by Louisiana law. Does Louisiana have a competitive market? Louisiana law plainly states that "no rate in a competitive market shall be considered excessive." So Senator Duplessis twice asked Commissioner Temple if Louisiana's market was competitive. Both times Temple responded that Louisiana has a competitive market, though he would like more competition. Commissioner Temple has repeatedly said that Louisiana's high insurance rates were due to a lack of competition and used this claim to promote industry-friendly legislation that strips policyholders of their rights. Has Commissioner Temple ever rejected a rate for being excessive? Senator Duplessis also asked Commissioner Temple and his staff multiple times if the Department of Insurance has rejected any rate increases for being excessive. Nichole Torblaa, the department's Chief Actuary, said, "We have deemed rates to be not actuarily justified." Later the department's deputy general counsel interrupted Commissioner Temple to clarify his comments after Temple claimed he had the authority to reject an excessive rate: "He's using the word excessive because you are, but what he's referring to is a high rate not comparable to the risk, which ends up being not actuarily justified." This was a theme throughout the hearing. Commissioner Temple repeatedly conflated the terms "excessive" and "actuarily justified." Profits “They don’t lie; they just don’t tell you unless you ask the right set of questions. The regulator won’t necessarily know what the insurance company is doing or what goes into their models. Heck, we don’t even know half the models’ names.” - Rich Piazza, former chief actuary for the Louisiana Department of Insurance Piazza's quote demonstrates the problem with a lax regulatory system that simply checks insurer's math. Big insurance companies employ armies of actuaries and lawyers who know how to build complex mathematical models that can justify any rate. Moreover, immediately after taking office, Commissioner Temple eliminated an internal rule that capped the amount of expected profit insurers could build into rate filings with the state. With no regulatory authority to reject excessive rates and no caps on expected profits, it is not surprising that expert testimony before the Senate Judiciary A committee revealed that some of the rate filings reviewed in Louisiana contained "really, really high" profit factors. As a result, Louisiana's personal auto insurance loss ratios (proxies for profit) were 9% better than the national average in 2023, and at least 5% better than each of our neighboring states: Arkansas, Mississippi, and Texas. It is also consistent with a detailed joint study from faculty at Harvard and Columbia, and a member of the Fed Reserve Board of Governors that found “higher [insurance] premiums are being charged in states where regulators apply less scrutiny to requests for rate increases.” Click here to watch the entire hearing from March 14, 2025. Click here to read expert's bombshell report on Louisiana's insurance crisis.

2025 Legislative Primer. The 2025 Louisiana Legislative Session begins Monday, April 14, 2025. Insurance is again at the forefront, but this time Commissioner Temple and his legislative allies are focused on auto insurance. Temple is touting a package of bills that promise to further stack the deck in favor of big insurance at the expense of Louisiana policyholders. Here is an overview of Louisiana's insurance crisis and the industry's continued efforts to profit off of policyholders' pain. 

Florida's failed model won't work in Louisiana. Louisiana's insurance crisis is crushing working families and small businesses. Property and auto insurance premiums are soaring while the Bayou State's loss ratios (a proxy for insurer profits) are among the best in the nation. Nevertheless, Commissioner Tim Temple, his allies in the legislature, and the insurance industry continue to push anti-consumer legislation that makes it harder for policyholders to file a claim with no promise of lowering rates.  Proponents of these bills that stack the deck further in favor of big insurance routinely cite the recent "reforms" enacted in Florida. So, let's set the record straight about Florida. Florida's reforms failed According to Insurance Business Magazine , insurers are seeking a 50% premium hike in Florida. Moreover, "Citizens Property Insurance Corp. is set to increase rates for most policyholders in Florida, despite recent statements from Gov. Ron DeSantis suggesting that the insurer would implement statewide premium decreases." Florida lawmakers stacked the deck in favor big insurance, then asked to be dealt a hand at policyholder's expense Immediately after passing the industry-friendly package, some Florida lawmakers began pitching "a proposal to invest in a new homeowners insurance company, according to a Miami Herald/Tampa Bay Times story. The pitch comes with an impressive projected return on investment of 165% over five years." Insurers lied to lawmakers and policyholders, pocketing billions while claiming losses Insurers exploited the lack of transparency and accountability. "As Florida insurance companies were going bankrupt, policies were getting dropped and homeowners were being left empty-handed, a new report says many of those companies were making billions." Lawmakers looking to roll back failed reforms Having realized their extreme reforms hurt policyholders, "Florida legislators have introduced bills that would amend state insurance laws," aimed "to enhance consumer protections while increasing regulatory oversight of insurance carriers operating in the state." The people of Florida are fed up The average home insurance policy is more than $8,000 higher in Florida than the national average. Unable to afford these unaffordable rates, Florida voters are looking to "take the power of lowering insurance premiums into their own hands." They will vote on "a newly proposed amendment to the State Constitution would also protect consumers from seeing their policies canceled." Louisiana cannot afford to follow Florida's failed model Louisianans are already paying more of their income on insurance than any other state. Working families and small businesses cannot afford to continue pursuing changes that benefit big insurance at their expense.

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. 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.

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.

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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.