Press Releases

January 26, 2024

The Insurance Policy Council

About the Council

The Insurance Policy Council was established at the request of Governor Jeff Landry to identify the problems that exist in the Insurance Industry in Louisiana and to discuss and propose solutions to those problems. This council was led by Commissioner-Elect Tim Temple and Ross Laris and included voices from across the political and policy spectrum in Louisiana. The findings listed below represent the recommendations made by the council.

Property Insurance is unavailable and unaffordable in Louisiana.
Between an unprecedented number of natural disasters and excessive regulations and
litigation, the property insurance market is in a crisis. In addition, twelve carriers went
insolvent, which prolonged the claims process for their policyholders and placed the financial burden on the shoulders of the remaining market participants and, indirectly, on taxpayers. Consumers are being priced out of the market due to skyrocketing premiums and decreasing options. Insurance providers are fleeing the state because of Louisiana’s uncompetitive regulatory environment and a constant threat of litigation. Louisiana is the most unaffordable state in America for insurance, and it is imperative that we reverse course and correct the fixable areas of our insurance market.

Recommended Solutions
1. Continue and expand the efforts to fortify roofs in South Louisiana. Claims and damages are dramatically reduced when a roof stays on a house during a storm. Therefore, to lower the cost of doing business, insurance premiums, and damages for consumers the council recommends supporting long-term funding of an expanded roof fortification effort.
2. Create a clear process for claims resolution. Currently, there are multiple statutes and
other regulations that cause confusion for insurance providers and consumers regarding
the process by which a claim is handled. To avoid costly litigation and to ensure
consumers’ claims are resolved in a timely manner, it is necessary to create a clearly
defined claims process.


Automobile insurance premiums are significantly higher than Louisiana’s neighboring states. Despite being average in the number of collisions and other factors that often contribute to higher auto insurance premiums, Louisiana’s average premiums are far higher than almost anywhere else in the United States. These high premiums are placing financial strains on Louisiana’s citizens and make the state uncompetitive when it comes to attracting and retaining citizens and business. Through a mixture of the state’s regulatory and litigious environment, premiums will continue to increase and price more Louisianans out of the state unless steps are taken to address the core problems surrounding our insurance market.

Recommended Solutions
1. Reform Louisiana’s statutory provisions surrounding the automobile insurance industry
to be more competitive with neighboring states. Many of Louisiana’s laws are out of
sync with neighboring states that have drastically lower premiums. Some examples are
collateral source, direct action, and the prescriptive period. The council recommends
reviewing the laws that make Louisiana an outlier and seeking potential legislative fixes
to make Louisiana more competitive while ensuring consumer protections.
2. Explore options to change Louisiana’s legal climate. Louisiana has been regarded as an
overly litigious environment for years. To make sure insurance providers can provide
affordable coverage, it is necessary to review and explore changes to the legal
environment that bring transparency, fairness, and honesty back into the litigation