FOR IMMEDIATE RELEASE
March 10, 2025

 

Commissioner Temple Highlights Positive Trends in Louisiana Property Insurance Market

Louisiana’s property insurance market is experiencing clear signs of improvement since the legislature passed Commissioner Tim Temple’s package of property insurance reform legislation last year. The Louisiana Department of Insurance (LDI) licensed 10 new homeowners insurers since the 2024 session began, and insurers already doing business here are filing fewer, less costly rate increases and beginning to provide rate decreases to some policyholders.

“Louisiana’s property insurance market didn’t get into a crisis overnight, and we aren’t going to get out of it overnight—but this data shows we are further along than I was expecting at this stage of the turnaround,” Commissioner Temple said. “Florida began its push for insurance reform in 2022 and started seeing similar results after about 18 months.”

After taking office in January 2024, Commissioner Temple took steps to improve Louisiana’s regulatory reputation nationally and internationally and worked with legislators to pass a comprehensive package of insurance reform legislation aimed at making Louisiana a more attractive place for insurers and reinsurers to do business.

“I will push for more reform this year and continue fighting to stabilize property insurance rates for Louisiana families and businesses,” Commissioner Temple said. “We are demonstrating that reform works on the property side. If we focus on auto insurance reform this session, I expect we’ll see similar results on the auto side as well.”

In addition to the 10 new homeowners companies, the Louisiana insurance market is improving in terms of both the cost and frequency of rate filings from property insurance companies.

Rate increases trended significantly downward in 2024

  • In the Homeowners line, the statewide average market impact for approved rate changes for 2024 was +6.6%. This is a sharp decrease compared to 2023, which was +14%, and 2022, which was +16.2%.
  • In the Commercial Multi-Peril line, the statewide average market impact for approved rate changes for 2024 was +3%. This is a significant decrease compared to 2023, which was +6.7%, and 2022, which was +3.9%.

  • In Fire and Allied Lines, the statewide average market impact for approved rate changes for 2024 was +1.8%. This is a sharp decrease compared to 2023, which was +5.8%, and 2022, which was +9.3%.

More filings for rate reductions and fewer filings for rate increases in 2024

  • In the Homeowners line, there were 50 requested rate increases in 2024, down significantly from 80 in 2023 and 75 in 2022.

  • In the Commercial Multi-Peril line, there were 29 requested rate increases in 2024, down significantly from 42 in 2023 and 34 in 2022.

  • In Fire and Allied Lines, there were 29 requested rate increases in 2024, down significantly from 51 in 2023 and 41 in 2022.

  • In the first two months of 2025, we have approved 7 rate decreases from Residential insurers, all between a 4% and 11% decrease. That is more than we approved in the entire calendar years of 2024 (5 rate decreases), 2023 (6), and 2022 (1).

About the Louisiana Department of Insurance: The Louisiana Department of Insurance works to improve competition in the state’s insurance market while assisting individuals and businesses with the information and resources they need to be informed consumers of insurance. As a regulator, the LDI enforces the laws that provide a fair and stable marketplace and makes certain that insurers comply with the laws in place to protect policyholders. You can contact the LDI by downloading our LDIConnect mobile app on the Apple App Store or Google Play Store, calling us at 800-259-5300 or visiting www.ldi.la.gov.