Louisiana Requires Insurers to Disclose Discounts Under New 2025 Regulation

The Louisiana Department of Insurance has mandated that vehicle and home insurance companies disclose all available discounts to current and prospective policyholders, effective May 1, 2025. This new regulation, stemming from La R.S. 22:881.1, requires insurers to provide clear, written notification of premium discount opportunities using at least 12-point font, distributed annually at policy renewals. The law was enacted following unanimous approval of HB375 during Louisiana's 2024 legislative session and aims to enhance transparency in the insurance market.

Commissioner Tim Temple has emphasized the state's insurance challenges, highlighting a significant annual loss ratio in Louisiana's auto insurance market, nearly triple the national average. He has introduced a broader auto insurance reform plan for 2025 focused on legal reforms to reduce cost drivers related to medical billing transparency, comparative fault, and general damages. These initiatives aim to address systemic factors impacting insurance affordability for Louisiana businesses and families.