Louisiana’s Homeowners Insurance Market Straining Under Weight Of 600,000 Claims
Monday, April 4th, 2022 Catastrophe Insurance IndustryFailed insurance companies. Multi-billion dollar losses. Consumers on edge. Sound familiar?
The last two years have dealt a punishing blow to Louisiana’s homeowners insurance market, much like the wave of hurricanes that rocked the Gulf Coast more than a decade ago.
Hurricanes Laura, Delta, Zeta and Ida have spawned hundreds of thousands of claims. Bruised by steep losses, some companies in the already-frail insurance market are now in retreat.
It’s the latest sign of a deepening crisis taking shape once again in Louisiana, where the legacy of Hurricane Katrina and other storms still looms large.
As big national insurers pulled out of coastal areas in the southeast, homeowners increasingly relied on less-regulated regional insurance providers to make them whole in case of catastrophe. Now, even some of those companies -- once willing to make a risky bet -- are leaving.
