Louisiana Governor Discusses Insurance Challenges and Solutions with Lloyd’s of London

Louisiana / London, U.K. – The Louisiana Office of the Governor announced on September 29, 2022, that Governor John Bel Edwards and a delegation of state officials and business leaders met Thursday with executives of the Lloyd’s insurance marketplace to discuss potential solutions to the insurance market challenges confronting Louisiana companies and homeowners. Discussions centered on Louisiana’s relationship with the insurance sector and how the state can maintain big insurers committed to preserving Louisiana’s commercial and residential investments.

Lloyd’s is a network of underwriting syndicates that specializes in both general insurance and the reinsurance coverage that individual insurance companies get to share their risk. Its roots date back to the 1600s. For many years, Louisiana has been one of Lloyd’s leading markets.

“Lloyd’s is vital to our energy industry, along with other major sectors of our economy,” Gov. Edwards said. “Today’s meetings addressed Lloyd’s ability to insure and reinsure risk in Louisiana, which is an important aspect of maintaining our healthy business climate. We had good discussions with senior leadership, underwriters, claims experts and others about their views of the Louisiana market, and what we can do from a statutory or regulatory standpoint to make the state more attractive to the industry.”

Lloyd’s representatives discussed long-term insurance and reinsurance trends in Louisiana. They highlighted economic, political, legislative, and regulatory issues considered by underwriters when deciding where to do business. They also discussed how the Lloyd’s insurance marketplace’s risk modeling affects Louisiana.

“Insurance rates are driven by many factors today and we want to better understand the pressures on the insurance markets,” Louisiana Economic Development Secretary Don Pierson said. “Today, those issues are inflation, climate change and certain regulatory requirements. How we think about and address issues that are significantly impacting premiums is critical to supporting a resilient insurance industry that is important to both businesses and citizens.”

Tim Temple, president of Temptan, LLC and president and chairman of Louisiana’s Committee of 100 for Economic Development, assisted in the planning of Thursday’s sessions.

“I am honored to lead our C100 delegation on this economic development trip to meet with UK-based stakeholders in our state,” Temple said. “Our meetings with the Lloyd’s markets are particularly important today as Lloyd’s plays a crucial role in the kinds of insurance and reinsurance that enable our economy to operate. We appreciate the opportunity to work with Gov. Edwards to build stronger relationships with these important partners.”

Insurance coverage is a major concern for many Louisiana residents, as market circumstances have been impacted by the state’s recent string of natural catastrophes. As a result, some Louisiana residents and companies have found it difficult or expensive to obtain insurance. The governor’s conversations with representatives from Lloyd’s focused on the significance of a strong reinsurance market in assisting individual insurance companies in navigating catastrophic risk.

Thursday was the first full day of meetings on Gov. Edwards’ economic development mission in London. On Friday, he will meet with officials from Shell, Cheniere Energy, Linde, and Drax, which are overseeing large energy transition investments in Louisiana. The governor is joined on the trade mission by leaders from LED, the Department of Transportation and Development, the Louisiana Offshore Terminal Authority, the Port of New Orleans, and the Port of South Louisiana, in addition to a delegation from C-100.