With the state legislature going to work in just over a week, a non-profit insurance watchdog group shares its hopes and concerns for consumer-oriented insurance reforms. Ben Riggs is the executive director of Real Reform Louisiana. He said his group is hoping to see substantive help for consumers, rather than bills to make a more business-friendly environment for insurance companies.
“What really needs to happen is we need to strengthen consumer protection and eliminate unfair practices that really stack the deck in favor of big insurance companies at the expense of Louisiana residents and small businesses,” said Riggs.
Riggs said some of the bills proposed by Insurance Commissioner Jim Donelon at a March 12th meeting with the industry would force policyholders to pay their legal expenses even if they win in court and would force policyholders to actually go to court twice in some cases. He said Louisiana needs to be on the taxpayer’s side.
“We’re well beyond the phase of trusting the insurance companies so what we would like to see is some of those expected cost savings to actually be guaranteed to consumers and taxpayers,” said Riggs.
Riggs said tort reforms passed in recent years were touted as a way to reduce auto insurance rates, but they have failed to do so. In fact, auto coverage rates have increased. He said his group does like a bill that would forbid setting auto rates based on gender. Currently, women pay higher rates than men, in most cases, and Riggs said that’s not right.
“The real reason auto insurance rates are high is because big insurance companies are using non-driving related factors to drive up premiums on policyholders and one of those is gender,” said Riggs.
Riggs said Real Reform Louisiana lobbies to deliver real reform that levels the playing field, increases competition and lowers costs.
Story by Kevin Gallagher
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