Louisiana

Louisiana has seen applications from nine property insurers for its incentive program, with the added funding they may receive likely to serve as a lever to help with the reinsurance cost burdens they face at the upcoming mid-year renewals.

The Louisiana state legislature is holding its property insurance focused Special Session this week, but the proposal is seen as a stopgap rather than a long-term fix, with reinsurance issues likely to persist in the current hard market.

Louisiana’s Governor has now called a special session of the states legislature to address property insurance issues in the state, with the goal of creating the Insure Louisiana Incentive Fund to encourage more companies to underwrite business there.

The US state of Louisiana looks set to follow in the footsteps of Florida, by holding a Special Session of the Legislature to address property insurance concerns, with the affordability of reinsurance a key driver.

U.S. coastal states such as Florida, California, and Louisiana are experiencing a growing property insurance crisis that is being driven by man-made events, highlighting the need for reinsurance capital to absorb more of the risk as carriers navigate a testing environment.

The state of Louisiana is concerned the reinsurance market could begin to reject its property risks, with the Insurance Commissioner saying he feared a “redlining” after consecutive major hurricane loss years and other market challenges.