Louisiana special session begins to address insurance crisis

BATON ROUGE, La. (AP) — As Louisiana insurers flee the state and residents face exorbitant and in some cases unaffordable homeowners insurance costs, lawmakers returned to Capitol Hill Monday for a special legislative session. to address the current crisis.

In a state decimated by hurricanes in 2020 and 2021, insurance companies continue to become insolvent, leaving behind tens of thousands of claims for the state’s bailout program to shut down. Other companies have simply decided to leave, determining the risk of remaining in a state that has a front-row seat to climate change, where coastal areas are eaten away by erosion, there is evidence of rising sea levels and devastating hurricanes. it has become more serious. Frequent — outweighs possible monetary reward.

Now lawmakers are considering a bill that would allocate $45 million in excess funds to a newly created incentive program, hoping to attract more insurance companies to Louisiana.

“It is critical that we fund this program, which will save Louisianans money on their home insurance,” Louisiana Insurance Commissioner Jim Donelon said ahead of the special session. “I have spoken with many of our state’s residents and business owners who are struggling to make ends meet and are now seeing insurance costs skyrocket. Some face prices driving them out of their homes.”