Louisiana Moves to Governor-Appointed Insurance Commissioner to Reduce Political Influence

The Louisiana Senate and Governmental Affairs Committee approved a bill to change the state's insurance commissioner position from an elected to a governor-appointed role. Senate Bill 214 proposes a selection method involving a committee of legislators, regulators, consumer advocates, and trade groups to recommend candidates, with the governor appointing from this list. Candidates must have direct industry experience and no conflicting public office or financial ties to regulated entities. The bill aims to reduce political influence in the commissioner's office, citing concerns about campaign financing and past commissioner misconduct.

Louisiana has faced challenges in insurance leadership, with previous commissioners convicted of federal crimes. The bill's supporters note that 39 states appoint insurance commissioners, including most states with the lowest auto insurance premiums, contrasting Louisiana's elected system. Opponents, including the current insurance commissioner, argue that the change removes direct voter accountability and fails to address core insurance market issues like cost drivers and insolvency. The proposed appointment system would take effect after the current commissioner's term expires in 2028, fitting into broader insurance legislation efforts in the state.