Legislative leaders and the governor’s office are meeting today to discuss the possibility of holding a special session to entice more property insurers to write policies in Louisiana. Since 2021 up to twenty insurance companies have either left or gone insolvent. But Jonesboro Representative Jack McFarland said not so fast.
“A few months ago, when this proposal was presented at Joint Budget, there was a $5 to $15 million price tag on it, now it’s jumped up to $45 million,” said McFarland.
Last month Commissioner of Administration Jay Dardenne and Senate President Page Cortez were leaning towards addressing the matter during the regular session in April, but Insurance Commissioner Jay Donelon said the state can’t wait that long. McFarland questions if the proposal will benefit existing insurance companies.
“Is it going to lower premiums for central and north Louisiana who didn’t have any damage but have seen their insurance premiums significantly increase,” McFarland asked?
The north Louisiana Republican questions why they should be called in to address the issue when they haven’t for other markets, like the trucking industry when very few companies would even write policies in Louisiana.
“While we ask business owners to solve their own insurance market issues, but now that we find it so important to that we have to go into a special session and put $45 million into a homeowners insurance program,” said McFarland.
If called it’s expected the session will be held in early February to avoid conflicts with the height of carnival season.
Comments