Monday, January 30th, 2023

Louisiana regulator proposes $20 million plan to fund insurer incentive program

Louisiana regulator proposes $20 million plan to fund insurer incentive program

To save lots of Louisiana’s insurance coverage market from a disaster, legislators and the Louisiana Division of Insurance coverage have proposed an incentive fund to draw extra insurers to the state.

Throughout a legislative session final week, lawmakers established the fund, however didn’t put any cash into it. Insurance coverage Commissioner Jim Donelon stepped as much as volunteer utilizing the $20 million {dollars} in extra from his division for the fund. In keeping with the commissioner, the surplus comes from charging firms for licenses and different prices of enterprise.

“I hope to get the authority from you and the governor to make the most of that $20 million to create an incentive program just like the one we had in and utilized after Katrina and Rita,” mentioned Donelon.

The motivation plan comes after seven insurance coverage firms introduced their withdrawal from the Louisiana market since Hurricane Ida, whereas others have remained however stopped writing new enterprise. This has left greater than 110,000 individuals to hunt protection from the state’s insurer of final resort, Louisiana Residents Property Insurance coverage Company. However simply final week, Residents requested a 63% price hike on all new and renewed residential insurance policies.

Learn extra: State property insurer to hike charges by 63%

“For my cash on this program I would like that 100% has to come back out of Residents to profit these 110,000 individuals first to profit those that are paying via the nostril,” Donelon commented.

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