Commercial property owners who have Louisiana Citizens Insurance will have a chance to get coverage from a private insurer. Governor Jeff Landry says all commercial policies are slated to move from the state-backed insurer of last resort to the private market.
“One company has been approved and is willing to take over every single commercial policy from Louisiana Citizens,” Landry said.
The private insurance provider is Property Insurance Company of America, which is based in Mississippi and in December of 2024 they were licensed as an admitted insurer in Louisiana.
The Louisiana Department of Insurance says there are 5,100 commercial policies in Louisiana. Landry says nearly all of them will be offered quotes from PICA.
“There should not be an agent in this state that should have no reason to move policyholders or to seriously discuss with those policyholders that are holding Citizens policies, to move over to PICA,” Landry noted.
Landry says the potential savings for Louisiana Citizens commercial policyholders is significant.
“Any one of those policyholders are going to realize anywhere between a 15% to a 40% reduction,” Landry stated.
Insurance Commissioner Tim Temple says this should help homeowners who have Citizens Insurance. Temple says moving commercial policies out of Citizens will lower the insurer of last resort’s exposure and reinsurance costs; thus, improving its financial condition and helping to put downward pressure on premiums for Citizens policyholders.
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