Insurance Reform in Louisiana Sparks Controversy, Expands Oversight | Insurify

The Louisiana Legislature recently passed multiple insurance reform laws aimed at decreasing insurance costs. But not everyone is happy about the changes.

The state's own insurance commissioner opposed the legislation, even though at least one of the bills expands his regulatory power.

Under current state law, Louisiana property and casualty insurers can implement rate changes immediately when they file detailed applications with state regulators. The law assumes approval and gives regulators 30 days to review the applications and notify insurers if they disapprove of the change.

House Bill (HB) 148, one of the six laws passed, empowers the state insurance commissioner to reject "excessive, inadequate, or unfairly discriminatory" rate increases. If the commissioner deems an increase to be unacceptable, he can direct an insurer to issue refunds to affected customers — or collect additional premiums if he decides an increase is inadequate.

It also gives the commissioner the power to decide whether an insurer must publicly disclose rate-calculation information the insurer has marked as "confidential, trade secret, or proprietary."

"It is the insurance department's job to protect you, to protect our citizens, when those who we pay premiums to break their promises and are bad actors," said Gov. Jeff Landry during his press conference and bill signing. "Today, we keep that promise by granting the insurance department greater authority to hold down rates."

How reform laws will affect Louisiana homeowners and drivers

HB 148 also requires insurers that write homeowners and auto insurance to "prominently" display the premium for the previous policy term on renewal notices. The notice must show the previous premium "in close proximity to the renewal premium."

Five additional insurance reform laws:

Stipulate that drivers who are more than 51% responsible for a car accident can't seek damages. Previously, drivers more than 51% at fault could still claim damages equal to the remaining fault percentage.Expand the state's "No Pay, No Play Law" to prohibit uninsured drivers from receiving damages for the initial $100,000 in accident-related bodily injury or property damage. Previously, the cap was $15,000.Bar undocumented immigrants from collecting damages for injuries they incur in a car accident, regardless of fault.Require anyone who sues a driver due to injuries from a car accident to show proof that the injury occurred during the accident. The legislation repeals the state's "Housely Presumption," which allowed plaintiffs who met certain criteria to sue for injuries without showing proof they incurred the injuries during the car accident.Allow drivers of commercial vehicles to earn a discount on their insurance premiums if their vehicle has dashboard cameras and telematics systems.

What's next? Opposition from within the insurance department

But opponents, including the Insurance Council of Louisiana, argue the legislation will hurt the market.

"[It] will significantly discourage needed insurance capital that would have otherwise come into the Louisiana marketplace," Rodney Braxton, the council's executive director, told the Baton Rouge Business Report.

The state's current commissioner, Tim Temple, to whom the bill awards more authority, also opposes the legislation.

"Instead of helping address our insurance crisis, this new law makes Louisiana's insurance industry more heavily regulated than California's. This is not the right path for Louisiana," Temple said in a recent statement recapping the 2025 legislative session.

"We compete against other states for insurance company capacity and absolutely must maintain our unbiased, predictable regulatory environment that fosters competition, protects consumers and ensures the financial stability of insurers," Temple added.

"We've taken steps to shield Louisianans from frivolous lawsuits driven by trial lawyers — using a data-driven strategy," Landry said of the newly passed legislation. "And we made it clear to insurance companies that they must answer to their policyholders."

The average annual insurance premium for homeowners in Louisiana is nearly $11,000, according to Insurify data. Home insurance rates will likely increase 27%, Insurify's data scientists predict.

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