Guest column: Let history repeat itself to fix auto insurance in Louisiana
Successful reforms targeting medical malpractice in 1975 and workers' compensation in 1991 solved
In 1975,
This reform was designed to stabilize the medical malpractice insurance market, reduce the burden on health care providers and ensure that patients still had access to necessary medical services. At the same time, legislators created an underwriting entity, the
In 1991,
This took adjustment of claims out of the open courts and into a stable adjudication process. Litigation was curtailed significantly and workers' claims were resolved quickly. At the same time, legislators created an underwriting entity, the
Under legislative mandate, the PCF and LWCC began writing insurance and both succeeded quickly in the improved environments established by the corresponding legal reforms. Both sponsored by the state, neither has created a financial burden on the state.
The success of the LWCC is particularly notable. It attracted dozens of insurance companies to
A key element of past legislation was easing of rate regulation. This allowed these state-sponsored underwriting entities to lead the commercial markets to lower rates to compete for business in an improved environment.
By contrast, one piece of legislation in 2025 gave the
But, following a successful playbook from the past, our legislators can pass legislation in 2026 to, first, establish a cap on noneconomic damages. Similar to the medical malpractice reforms, implementing a cap on noneconomic damages in automobile liability cases will help stabilize insurance premiums by reducing the potential for unnecessarily large jury awards.
Second, they should streamline claims processing by implementing a mandatory adjudication process for auto liability claims outside the traditional court system, like the process in
Third, they should create an underwriting entity, like a PCF or an LWCC, to spur the market in a better environment established by the first two reforms.
By adopting legal reforms and sponsoring an underwriting entity,


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