Louisiana Property Insurance Struggles Persist Despite 2024 Reforms

Louisiana's property insurance market continues to face significant challenges four years after Hurricane Ida. Despite reforms introduced in 2024 aimed at facilitating rate increases and policy cancellations for insurers, homeowners are still experiencing substantial premium increases. The state's insurer of last resort, Louisiana Citizens, remains burdened with more than three times its target enrollment, indicating a slow market recovery and limited private market participation. Premiums for many homeowners have tripled, as private insurers have exited the market, and some residents can only obtain coverage through Citizens at much higher costs. Industry stakeholders highlight the persistent risk in southern Louisiana as a key barrier to market stabilization, exacerbated by inflation, reinsurance costs, and frequent storm activity. Experts advocate for increased use of home fortification measures, such as fortified roofing, to enhance insurability and encourage private sector coverage, drawing on examples from neighboring states. The ongoing high participation in Citizens raises questions about the long-term sustainability of the property insurance market in Louisiana and the effectiveness of current reforms to restore a viable private insurance marketplace.