Audit: Louisiana DOI Could Do More to Improve Handling of Claims Complaints

The Louisiana Department of Insurance could do more to improve claims handling, though the department is complying with the law to ensure companies are handling claims in a fair and timely manner, according to a Louisiana Legislative Auditor’s report.

Louisiana Legislative Auditor Mike Waguespack issued an audit report last week on the regulation of residential property insurance by LDI that included highlights from 2020 and 2021, as well as recommendations for changes by the department and Legislature.

"Overall, we found that LDI has procedures and practices to ensure that insurance companies follow the law and handle claims in a fair and timely manner," Waguespack wrote to lawmakers. "However, we identified additional ways LDI could strengthen these activities, as well as a revision to Louisiana’s insurance code the Legislature may wish to consider."

Auditors found most adjusters working hurricanes in recent years were licensed, though catastrophe adjusters were not required to be licensed in 2020 or 2021.

The majority of complaints to LDI for those two years centered on claims handling issues and the department’s response was not as quick as years past, according to the report.