Donelan proposed allocating $45 million A stimulus fund previously established by lawmakersTo attract seven insurers to begin writing policies in Louisiana.
“Insurance Commissioner Jim Donnellan has stressed that funding the Insurance Louisiana Stimulus Fund cannot wait until the April regular session,” Edwards said. “I am grateful for the cooperation of the Senate President and the Speaker of the House and the Legislature in calling this special session focused on this funding.
“While Commissioner Donnellan says we must do this now, it is a first step in addressing Louisiana’s ongoing insurance problems after the devastating hurricane seasons of 2020 and 2021, a crisis exacerbated by hurricanes and wildfires in other states in 2022.”
The special session will be held from January 30 to February 5, according to a local Louisiana news agency WAFB Channel 9 reported.
Edwards and Donelan’s concerns are not unfounded. I only saw it last year Eight insurers go out of business, and many had told clients they would stop writing new business in Louisiana. The rise of Insured losses due to hurricanes in previous years It has also contributed to the state’s deteriorating insurance market.
The home insurance market in Louisiana is so troubled that the state’s insurer of last resort, Citizens Property Insurance, has become overwhelmed. Donnellan explained last week that Citizens would cover about 125,000 households — more than double the 65,000 it could realistically handle — and that Citizens consumers face premium hikes of up to 63%.
Louisiana was recently ranked 10th most expensive state for home insurance In a national survey conducted by Clearance. According to the study, the average insurance rate for a $200,000 home is $1,736. By comparison, homeowners in Hawaii — the state with the most affordable home insurance rates — pay just $327 for a $200,000 property.