Photo by Brooke Thorington
The Governor’s Office and state lawmakers will discuss a possible special legislative session in early February to deal with the exodus of insurance companies from Louisiana and how to bring new insurers here. Commissioner of Administration Jay Dardenne says a meeting is scheduled Wednesday between the Governor and House & Senate leaders…
“…to discuss the possibility of a special session and the timing of that session. It would be called for the sole purpose of addressing the homeowners insurance crisis and an attempt to get some policyholders off of the citizen Insurance and into private insurance.”
The combined hits of two hurricanes in 2020, plus Hurricane Ida in 2021 and a major flood event in 2022 have caused a number of property insurers to either go insolvent of leave Louisiana altogether. Dardenne says the proposed special session would be so lawmakers can approve using surplus revenue for an incentive fund to attract new insurers to come here. Dardenne says this is the time of year when insurers are lining up their re-insurance (insurance for insurers) and Louisiana needs to act fast, to be part of their plans…
“We need to act more quickly so that we can get the benefit of re-insurance available to insurers who choose to write these policies.”
The incentive fund worked in the 2000’s, when Katrina and Rita drove companies away and the state needed to entice new property coverers. Insurance Commissioner Jim Donelon says it will work again, if the state acts quickly…:
“I think the meeting on Wednesday is going got be a decisive one, that’ll decide if we’re to move forward. And if so, when will that be? And my guess is shortly thereafter a call will be issued.”
Dardenne says if the special session is called, it will likely be only a few days long, and probably take place in early February. He says we’ll all know by the week’s end.
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