Supporters of recent insurer-friendly laws in Louisiana say that allowing companies to drop customers will help drive down rates and keep people insured in the long run. But as California homeowners grapple with the implications of dropped insurance policies, some consumer advocates warn that Louisiana’s laws could be disastrous.
“When you give giant corporations more freedom to ruthlessly pursue profit, they do it and they don’t really think too hard about how this impacts individuals,” Peter Robins-Brown, the executive director of Louisiana Progress, said.
More than 20 insurance companies have fled Louisiana or gone under in the aftermath of worsening hurricanes since 2020. It’s driving homeowners’ costs up, causing people to go without insurance or be forced onto Louisiana Citizens, the state insurer of last resort, which is 10% more expensive than the market.