Amid insurance crisis, crowd packs New Orleans meeting to gripe about spiraling premiums
About 100 people packed a public meeting in
Insurance Commissioner
But those changes don't take effect until 2026. And they offer no relief to the thousands of residents saddled with an explosion in premiums after seven insurance companies went under in the past year.
The crowd, in a ballroom at the
Donelon offered no immediate fixes. He said it's essential that the state fortify its building codes and offer financial incentives to insurance companies to write policies in risky areas.
The insurance commissioner was joined in the question-and-answer session by officials from the
The association's
To help cover other losses and replenish its reserves, the association expects to borrow
Meantime, when some customers of failed companies seek a new insurer, they're facing costs that are double or triple what they had under their old policy.
"Why can't they get a policy comparable to what they were already paying?" said Rep.
"I don't have an answer for that," Donelon said. He said lawmakers would have to step in and offer a round of emergency funds to help bridge the gaps.
Donelon offered other recommendations:
Ask your mortgage lender for help obtaining or adjusting your policies.When home repairs cost more than adjusters expect, file follow-up claims to cover the difference.If a company drops a policy you've held for at least three years, file a complaint with the
In opening remarks, Donelon and legislators laid out the case for why
"Many of our citizens are facing a crisis, one we understand you did not create," Hughes said.
More cash reserves
Legislators pointed to several proposals aimed at addressing the issue. That includes new laws to raise the amount of cash insurers must have on hand - the first line of defense for paying claims after disasters.
The minimum will increase from
The four hurricanes to make landfall in
Seven failed companies
Donelon has described the situation as a "crisis," and he called Wednesday evening's town hall meeting to take and answer questions and offer perspective.
Amid the avalanche of claims, seven insurance companies have failed in the past year. Five of those firms left behind some 26,000 claims for the state's bailout program to close out, pushing the burden onto the
The association is supported by fees assessed to other insurers that write business in the state. Its current plan to borrow money to pay off claims marks the first time in three decades it has taken such a step.
12 more leaving
Meanwhile, at least 12 companies have submitted withdrawal notices with the
The combined effects of the marketplace shakeup are shifting more people to the state's insurer of last resort, the
Subsidies for new insurers
Homeowners say they're finding fewer options and higher prices while searching for new coverage.
Donelon has said he wants to restart a program that
In all, the state spent
Adventist HealthAdventist Healthextends contract with Anthem Blue Cross
Louisiana Guaranty Fund to borrow $600 million to pay claims
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