The Louisiana Department of Insurance (LDI) reports notable progress in stabilizing the state’s property insurance market following 2024 reform measures led by Commissioner Tim Temple. Since the legislation passed, 10 new homeowners insurers have entered the market, rate increase filings have declined, and some policyholders are seeing rate reductions. These improvements mark a shift from previous years of steep rate hikes and insurer withdrawals, offering hope for a more competitive and stable insurance landscape. Commissioner Temple credits these early signs of success to legislative efforts aimed at attracting insurers and lowering costs for Louisiana homeowners, with additional reforms planned to further stabilize the market.
Key Highlights from the Louisiana Property Insurance Market Update:
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Decline in Rate Increases:
- Homeowners insurance saw a statewide average market impact of +6.6% in 2024, down from +14% in 2023 and +16.2% in 2022.
- Commercial Multi-Peril insurance experienced a +3% increase in 2024, a drop from +6.7% in 2023 and +3.9% in 2022.
- Fire and Allied Lines recorded a +1.8% increase in 2024, compared to +5.8% in 2023 and +9.3% in 2022.
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Fewer Requests for Rate Hikes:
- Homeowners Insurance: 50 rate increase requests in 2024, down from 80 in 2023 and 75 in 2022.
- Commercial Multi-Peril: 29 rate increase requests in 2024, compared to 42 in 2023 and 34 in 2022.
- Fire and Allied Lines: 29 rate increase requests in 2024, down from 51 in 2023 and 41 in 2022.
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Early 2025 Signs of Relief:
- Seven residential insurers have already approved rate decreases between 4% and 11% in the first two months of 2025.
Commissioner Temple emphasized that while Louisiana’s property insurance crisis will take time to resolve, these positive trends show the state is ahead of schedule in its market recovery. Looking ahead, Temple plans to push for additional reforms, including a focus on stabilizing auto insurance rates in Louisiana.