Louisiana Insurance Reform Targets High Premiums Through Legal Changes

Louisiana's high insurance premiums are being addressed through legislative efforts focused on legal reform, according to the state's Insurance Commissioner, Tim Temple. The state experiences more than double the national average frequency of bodily injury claims, with litigation rates significantly higher, contributing to elevated claims costs and insurance premiums.

Several bills are being considered to reduce abuse of the legal system and thereby lower the number of claims. Among these are House Bill 431, concerning modified comparative fault, and House Bill 436, which limits damage recoveries for unauthorized aliens. These measures aim to rebalance the legal landscape affecting insurance claims.

However, Commissioner Temple has expressed opposition to House Bill 148, which mandates insurers to disclose prior premium amounts during policy renewals and eliminates the distinction between competitive and non-competitive insurance markets regarding rate regulation. He cites concerns about loss of confidentiality and negative impacts on Louisiana's insurance business environment.

Despite some legislative resistance, Commissioner Temple noted that insurance companies in Louisiana have historically experienced losses, particularly during years with significant catastrophic events. Recent years have seen limited catastrophe activity but only modest profits for insurers, highlighting ongoing financial challenges in the market.

Upcoming Senate Judiciary meetings will decide the fate of additional reform bills, with potential challenges due to absent members and possible tie votes. Commissioner Temple emphasized that meaningful insurance reform requires balanced legal changes to prevent claim abuses while ensuring fair compensation for legitimate injuries and losses. Governor Landry is expected to participate in press events related to legislation outcomes.