Louisiana Lawmakers Assess Insurance Reform Effectiveness

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Lawmakers are examining the effectiveness of recent insurance reforms amidst high premiums.

News Summary

Louisiana lawmakers are questioning the effectiveness of insurance reforms enacted earlier this year due to persistently high premiums. A two-year study mandated by Senate Concurrent Resolution No. 60 aims to evaluate the impact of recent reforms on market competitiveness and affordability. Key factors will be analyzed, including the number of insurers entering the market and consumer complaints. Governor Landry has signed significant tort reform legislation but faces criticism from industry experts. The ongoing session leaves room for additional reforms to address high insurance costs.

Louisiana – Louisiana lawmakers are actively questioning the effectiveness of a series of insurance reforms passed earlier this year in response to persistently high premiums that continue to burden residents. As part of ongoing efforts to assess the situation, a comprehensive two-year study has been mandated by Senate Concurrent Resolution No. 60, which will be conducted by the Department of Insurance. This study is slated to take place from July 1, 2024, to November 1, 2026, with the aim of determining if the recent changes have succeeded in making Louisiana’s insurance market more competitive and affordable for both insurers and policyholders.

The upcoming study will examine several key factors to gauge the effectiveness of the reforms. These factors include the number of insurance companies entering the Louisiana market, requests for rate changes by insurers, and consumer complaints regarding insurance practices. There is considerable hope among lawmakers that, as a result of these reforms, Louisiana can improve its national rankings concerning legal and regulatory environments for insurers.

To thoroughly evaluate the situation, the study will leverage data sourced from industry experts such as ISO Verisk and S&P Global. This data will be instrumental in tracking changes in average premiums and the handling of claims. In addition to numerical data, a narrative report will be generated to detail the effectiveness of specific reforms adopted in Louisiana’s legislative framework.

On May 28, 2025, Governor Jeff Landry signed into law what he describes as the largest tort reform effort in state history. House Bill 148 is at the forefront of this initiative, granting the state’s insurance commissioner, Tim Temple, the authority to reject what are deemed excessive rate hikes by insurance providers. Amendments made to this bill also permit the commissioner to require refunds from insurers when necessary and to gain access to confidential rate data, providing more oversight in the insurance industry.

Despite the broad support for these reforms, the legislative package has not been without controversy. The Insurance Council of Louisiana and even the state’s insurance commissioner have raised concerns that these changes may deter insurers from operating in Louisiana, thereby diminishing market competition. In addition to House Bill 148, Governor Landry has signed other related legislation aimed at addressing the issue of uninsured motorists and introducing a new “modified comparative fault” standard in accident cases.

Governor Landry has criticized the rising profits of insurance companies while Louisiana residents grapple with escalating premiums. He advocates that the reforms instituted should alleviate alleged frivolous litigation, a point he believes contributes to the state’s high insurance rates. However, skepticism remains among industry experts regarding whether these reforms will produce significant reductions in insurance rates for consumers moving forward.

Amid these developments, Landry reiterated his commitment to ensuring that insurance companies do not impose excessive rate increases following the implementation of the promised reforms. The current legislative session is set to continue for an additional two weeks, leaving open the possibility for further reforms to be introduced in a bid to tackle the high cost of insurance.

Critics of the reform package, particularly from the trial lawyers’ community, argue that the newly enacted laws may place additional burdens on injured consumers while failing to deliver the intended reductions in insurance rates. The overarching goal of this reform effort is to strike a balance of accountability, holding both trial lawyers and insurance companies responsible for the high costs associated with insurance in Louisiana.

As Louisiana navigates these reforms, the focus will remain on monitoring the results of the forthcoming study and the effects of the new laws, as stakeholders await clear signals regarding their impact on the state’s insurance landscape.