Louisiana Takes Bold Step to Stabilize Home Insurance Rates with $45M Incentive Program Approval

Share This:[Sassy_Social_Share]

Published February 08, 2023

Louisiana Takes Bold Step to Stabilize Home Insurance Rates with $45M Incentive Program Approval

Louisiana – Louisiana Insurance Commissioner Jim Donelon provided an update on his plan to revitalize the Louisiana homeowners insurance market today, February 7, 2023, following Governor John Bel Edwards’ signature of the bill funding the Insure Louisiana Incentive Program. During a special session last week, the legislature overwhelmingly approved funding for the critical $45 million program.

“We will continue to be laser focused on stabilizing rates for homeowners and attacking this crisis head on,” said Commissioner Donelon. “I want to thank Governor Edwards, President Cortez, Speaker Schexnayder, and the members of the Louisiana Legislature who worked diligently to advance this priority legislation in an overwhelmingly bipartisan fashion.”

“The incentive program, which has a proven record of lowering rates and stabilizing our market after hurricanes Katrina and Rita, is only one part of our plan to protect our homeowners and our way of life from the ongoing crisis in the international insurance market. We will keep fighting for Louisiana homeowners, and this is a critical step,” Commissioner Donelon said.

Commissioner Donelon requested that the Governor and legislative leadership convene a special session to expedite relief for homeowners across the state. The session was solely focused on funding the incentive program, and it concluded last week with the passage of HB1 by both the State House and Senate. The Governor’s signature authorizes funding for the incentive program and allows the Department of Insurance to begin recruiting new insurers to write policies for Louisiana residents.

The program’s $45 million budget will be used to attract new businesses to the market, encourage existing businesses to write new policies, and depopulate Louisiana citizens while stabilizing rates through competition. So far, ten companies have expressed an interest in participating in the program.