Insurers based and operating in the state of Louisiana are reported to be on the hook for $10.5 billion of losses from last year’s hurricane Ida, according to the state’s Insurance Commissioner.
Insurance Commissioner Jim Donelon reported that by the end of 2021, insurers had paid or reserved for $10.5 billion of hurricane Ida-related claims in Louisiana.
It’s the first data call related to hurricane Ida, which slammed into Louisiana on August 29th 2021, as a Category 4 storm and affected 25 parishes.
In total there have been 434,633 claims of all types filed for hurricane Ida as of December 31st and an impressive 83% of claims are already closed.
Out of those claims, 259,134, or 60%, are already closed with payment, meaning that some $6.5 billion in claims payments for damage caused by the hurricane have already been made by insurers.
“Louisiana’s resiliency has been thoroughly tested in 2020 and 2021. Paid claims for Hurricane Ida represent a way forward for those most affected by this hurricane,” Commissioner Donelon said. “This $10.5 billion will help Louisiana policyholders rebuild their lives, homes and businesses.”
The total is less than half of the more broadly insurance and reinsurance industry loss estimates for hurricane Ida, which still stand somewhere from the $30 billion mark, up to $35 billion, or a little above, depending on whether you include losses in the north eastern states, or flood insured losses from the NFIP.
But for a single state this is a significant hurricane insured loss total and while claims payments are moving quite fast, Louisiana has faced its issues.
Claims delays have topped the list of complaints related to hurricane Ida, that the Louisiana Department of Insurance has received.
Almost 80% of the 3,305 hurricane Ida-related complaints received are about homeowners insurance, Insurance Commissioner Jim Donelon said.
“Many Louisianans are still trying to pick up the pieces in their recovery from Hurricane Ida. I urge residents who are still having trouble with their insurance company to contact us now,” said Commissioner Donelon. “Policyholders should also know they have a right to a copy of their entire claim file, they can accept and spend all payments on their claims and can file supplemental claims if they are not fully compensated for their loss unless they signed a release in settlement of their claim, and their claim for hurricane damage cannot be used to nonrenew their policy or increase their premium.”
Louisiana’s insurers and those operating there, will have made significant reinsurance recoveries to assist them in paying these claims from hurricane Ida.