Louisiana lawmakers are asking whether or not the massive insurance coverage fixes they handed earlier this yr are literally making a distinction. With premiums nonetheless sky-high and insurance coverage carriers gradual to return to the market, they’ve known as for a radical check-up on the state’s insurance coverage well being.
In a decision handed through the 2025 legislative session, officers requested the Division of Insurance coverage to run a two-year research, monitoring whether or not the reforms have made Louisiana extra aggressive and less expensive for each insurers and policyholders. The concept is easy: extra competitors, fewer lawsuits, and a extra predictable authorized panorama may make it simpler for insurance coverage corporations to do enterprise right here—and make it cheaper for residents to remain insured.
The decision, often known as Senate Concurrent Decision No. 60, displays years of frustration with excessive prices and restricted protection, notably in owners’ and auto insurance coverage. Lawmakers pointed to what they see as a historical past of extreme litigation that’s pushed up declare bills and compelled insurers to boost charges or depart the state altogether. By curbing these authorized pressures, they hope to see decrease prices for carriers and, finally, for customers.
To search out out whether or not that’s taking place, the research will monitor dozens of indicators from July 1, 2024, to November 1, 2026. The Division will have a look at what number of insurance coverage corporations try to enter the market, what number of succeed or are denied, and what number of are actively writing insurance policies. They’ll additionally tally up how usually corporations ask to boost or decrease charges, and what number of complaints are available in from customers.
The decision additionally requires a deeper dive into nationwide rankings that measure how pleasant a state’s authorized and regulatory atmosphere is for insurers. Officers are hoping to see Louisiana climb in these standings. The Division can be utilizing information from massive trade sources like ISO Verisk and S&P World to observe month-to-month modifications in common premiums, claims dealing with, and whether or not insurers are pulling merchandise or increasing choices.
However this isn’t nearly numbers. The Division has additionally been requested to jot down up a story that connects the dots—what’s working, what’s not, and which of the 2025 reforms have had probably the most affect. If some information isn’t obtainable, the company is allowed to fill within the gaps with different related data to make sure a whole image.
The ultimate report is due by the tip of 2026 and can be introduced at a joint assembly of the state’s Senate and Home insurance coverage committees. Lawmakers need the Division to incorporate coverage ideas too, in case extra fine-tuning is required to maintain the market on a greater path.
For a state that’s been hit laborious by storm harm, provider exits, and fee hikes, the hope is that this effort can lastly convey some long-term stability. Whether or not it does, properly, that’s what they’re looking for out.