By Nolan McKendry May 15, 2025
(The Center Square) − Louisiana legislators pondered more than a dozen bills attempting to address the state’s insurance crisis.
Between the House and Senate insurance committees, 14 were reported favorably and will head to the respective chambers. While most were reported without objection, some were contested and some were rejected.
One bill that was rejected would have required homeowner insurance companies to disclose profits of affiliated entities, such as claims adjusters, with the information published by the Department of Insurance.
It included penalties for noncompliance, directs the commissioner to create the disclosure form, and allows rulemaking under the Administrative Procedures Act.
Though the bill failed, Senate Insurance Chairman Kirk Talbot, R-Jefferson, said that it was worth discussing.
The bill’s failure reflects a divide between lawmakers and the insurance industry that seems incapable of being bridged. Sen. Royce Duplessis, D-Orleans, and other Democratic legislators have become increasingly vocal about holding insurers accountable rather than advancing more rounds of tort reform.
“I think your push to go after lawyers is a red herring,” Duplessis told Temple.
“The push is to lower claims, which premiums will follow,” Temple said, adding that he had testified before 14 committees identifying the cost drivers of insurance. Duplessis again remained unconvinced.
Early in the day, Rep. Chad Brown, D-Assumption, reintroduced an amendment that would have redefined how Louisiana determines whether insurance rates are excessive. Put simply, the amendment would have allowed the commissioner to more easily lower rates, thereby limiting the profitability of insurers.
According to Brown, his amendment adopts model language from the National Association of Insurance Commissioners and would give the commissioner more authority to scrutinize insurance company profits and expenses.
David Caldwell, general counsel at the Louisiana Department of Insurance, called the efforts to scrutinize the commissioner’s authority to set rates a waste of time.
“I’ve spent at least 100 hours with my staff having to rebut an argument that is fundamentally flawed and intellectually dishonest,” Caldwell said.
Even Rep. Brian Glorioso, R-St. Tammany, worried that the Legislature had been proposing too many pro-industry bills.
“I’m really getting tired of any time we have anything that’s a little bit pro-consumer, the industry comes to the table and says, ‘We’re just going to take our toys and go home,'” Glorioso said. “It’s disingenuous and I’m tired of it.”
Glorioso was responding to opponents of House Bill 356, which mandates insurers to offer homeowners the option of coverage based on a declared property value, not market value. The bill narrowly passed committee.
Many of the bills on Wednesday centered around property insurance, with legislators continuing efforts to make the market more competitive. Legislators are also working to expand incentives for Louisianans participating or hoping to participate in the Fortified Roof Program.
In March, Insurance Commissioner Tim Temple said that he would seek funding for the Fortified Roof Program.
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