Since the double-punch of Hurricanes Laura and Delta in 2020, 11 residential property insurance companies doing business in Louisiana have been declared financially insolvent and 12 can longer conduct business in the state.PropertyInsurance Industry
Combined, the 11 insolvent insurers held 184,000 policies.
To cover the outstanding claims of the insolvent insurers, the state-chartered Louisiana Insurance Guaranty Association borrowed $600 million state-approved dollars.
This debt will be paid through an assessed fee on Louisiana’s other insurance companies.
According to the Public Affairs Research Council of Louisiana, insurers can ‘recoup the fee by either increasing the rate on policyholders or taking a premium tax credit from the state.’ Most companies will take the tax credit.