Commissioner of Insurance State of Louisiana Jim Donelon
Insurance Commissioner Jim Donelon announces a 30-day application period is open for the Insure Louisiana Incentive Program. Donelon says the incentive program will offer matching grants to incentivize new and existing insurance companies to write residential and commercial policies.
“And 50% of that new premium that they write has to be in the lower half of our state’s 64 parishes,” said Donelon.
Donelon says 12 insurance providers have expressed interest in the program that he believes will decrease the number of home and business owners who rely on Louisiana Citizens, which is raising rates by an average of 63% this year. Donelon says a similar program after hurricanes Katrina and Rita reduced the number of Citizens polices by 40,000.
“We’re hopeful that a similar number if not more will avoid that 63% rate increase they are facing,” said Donelon.
Donelon encourages Louisiana homeowners who have Citizens or unable to find affordable insurance to contact an insurance agent and ask for as many quotes as possible in the coming months. He says they are moving quickly to get new insurers writing residential and commercial policies in the coastal areas.
“They will have to wait until they are set up, but we are on a expediated basis,” said Donelon.
Donelon says participating insurance companies must meet solvency standards and the insurers will be also subject to enhanced solvency monitoring.
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