Jim Donelon: Affordable, accessible insurance is mission critical

Skyrocketing insurance is an existential crisis for Louisiana's residents and economy. The crisis stems from bad policies in Florida and a series of record-breaking, destructive storms that made doing business in Louisiana a costly, high-risk gamble for insurers.

We faced a similar crisis after hurricanes Katrina and Rita. In response, we instituted an innovative incentive program to attract insurers and save people their hard-earned money. It worked, and that's what we're advocating to do again.

A recent article in The Advocate | The Times-Picayune fails to acknowledge this success and erroneously claims companies entering our market don't meet adequate standards for solvency. Worse yet, misleading headlines give the false impression that Citizens policyholders are being sold a bill of goods. This is not true.

We follow state law requiring insurers to meet nationally recognized financial rating standards. And we invite reputable insurers of any size to help Louisianans insure their homes.

Our policies are working, even in the face of extreme headwinds. Consider the savings — often hundreds of dollars every month — people insured by the 30 smaller companies we attracted to Louisiana have received over the 15-plus years since our post-Katrina incentive program began.

Of course, we all would prefer that insurers doing business in Louisiana have the highest rating available, but we, like the federal regulators overseeing mortgages for Fannie Mae and Freddie Mac, realize allowing only the highest rated companies would significantly reduce competition and increase costs for policyholders.

Although a California special interest group he quotes would prefer a government-run insurance program funded by taxpayers, The Advocate's own editorial staff said "rebuilding the private market is a better course than pushing the state deeper into the homeowners' insurance business."

Louisianans deserve access to affordable insurance that protects our property and our way of life. That's what drives my every move. We will continue to build a stronger insurance market that welcomes, and carefully vets, insurers to offer sound, affordable policies.

JIM DONELON

Louisiana insurance commissioner

Metairie