Louisiana Department of Insurance Issues Hurricanes Katrina and Rita 10-Year Anniversary State of Market Report
Aug 11, 2015
Louisiana Insurance Commissioner Jim Donelon released a new report on Louisiana’s insurance market in conjunction with the Louisiana Department of Insurance State of Insurance Markets Ten Years Post-Hurricanes Katrina and Rita Summit held at the University of New Orleans today, August 11, 2015.
The report details the effects of what were ultimately the two costliest disasters in United States history and how the Louisiana insurance market has grown over the past 10 years in their wake.
The full report is available at www.ldi.la.gov/katrinasummit.
Commissioner Donelon was joined by Mississippi Commissioner of Insurance Mike Chaney at today’s event, along with business leaders and representatives of the property and casualty insurance markets.
“Through the efforts of so many in the public and private sectors and the resiliency of our residents, Louisiana has weathered the challenges that were left in the wake of Hurricanes Katrina and Rita. Our insurance market has come back stronger and more diverse 10 years later and our consumers have more options, more competition and more reasons to expect a bright future,” Commissioner Donelon said.
Among the facts shared in the report are:
Louisiana now has 22 new insurers operating that were not there in 2005–an outcome partially attributable to strategies such as legislative reforms, active recruitment of companies and Louisiana’s Citizens Property Insurance (“Citizens”) Depopulation program.
- Louisiana Citizens’ post-Katrina and Rita market share has decreased from a 10-year high of 9.8 percent to 1.8 percent today
- From 2008 to 2015, Louisiana Citizens moved from the third-largest insurer in the state to the ninth-largest
- In 2014, Louisiana homeowners’ insurance rates rose 2.8 percent on average–the lowest statewide average rate increase since 2005
Commissioner Donelon credited many factors for the recovery of Louisiana’s private insurance market, including the creation of a mandatory statewide building code in 2005 and mitigation incentives enacted in 2007.
Insurance premium discounts offered to those who comply with the Louisiana State Uniform Construction Code apply to new and retrofitted, one or two-family, owner-occupied and modular homes and are generally up to 20 percent in coastal areas.
New laws also tripled the “safety net” of the Louisiana Insurance Guaranty Association by increasing the coverage provided to homeowners from $150,000 to $500,000 per claim.
Panelists for today’s event included:
Jeff Albright, Independent Insurance Agents and Brokers of Louisiana
Richard Clements, Professional Insurance Agents
Blythe Lamonica, Coalition to Insure Louisiana
Vijay Ramachandran, Louisiana Citizens
Caitlin Berni, Greater New Orleans, Inc.
Michael Hunnicutt, Louisiana Floodplain Management Association
Tony Hake, Federal Emergency Management Agency (“FEMA”)
Mark Lujan, FEMA
David McKey, National Association of Realtors
Chuck McMains, Property and Casualty Insurers Association of America
Kevin Cunningham, American Insurance Association
James Lynch, Insurance Information Institute
Bonnie Steen, Louisiana Surplus Lines Association
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