NEW ORLEANS — Louisiana lawmakers approved $42 million in incentive payments to give a boost to the state's struggling property insurance market.
The money will go to eight insurance companies in an attempt to draw more competition to Louisiana's property insurance market.
That money lowers the risk for insurance companies, who have agreed to write twice that amount in new premiums and stay on that coverage for five years.
Companies approved Friday include:
- Allied Trust Insurance Co.
- Cajun Underwriters Reciprocal Exchange (CURE)
- Constitution Insurance Co.
- Elevate Reciprocal Exchange
- Gulf States Insurance Co.
- SafePoint Insurance Co.
- SafePort Insurance Co.
- SureChoice Underwriters Reciprocal Exchange (SURE)
"It will stabilize (the market) and the first time we did this after Katrina and Rita, it had that effect," Louisiana Insurance Commissioner Jim Donelon said. "Homeowner's insurance on a statewide basis increased just 1% per year each of those five years."
Insurance prices skyrocketed in Louisiana after Hurricanes Laura, Delta, Zeta and Ida. A dozen insurance companies have gone belly up and several more have stopped writing policies since Hurricane Ian hit Florida in 2022.
As a result, more than 100,000 households had to turn to Citizen's -- Louisiana's insurer of last resort.
Now, up to 90,000 of those customers could get cheaper plans from these insurers.
“The good news is we offered $45 million in incentive grants to companies to come write more business, new business, and take the pressure off Louisiana Citizens, which has swelled to 135,000 policyholders," Donelon said.
That won't bring down insurance prices for everyone, but it will still be a welcome relief for thousands of Louisiana residents.
Donelon says some of these companies could even be writing policies as early as next month.
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