Some Call For Special Session To Deal With Insurance Crisis

As Louisiana faces ongoing insurance challenges, with insurers leaving or going out of business in the state, some lawmakers are calling for a special legislative session to address the crisis.

Discussions between Governor John Bel Edwards, State Insurance Commissioner Jim Donelon and legislative leadership about a possible special session are ongoing. State Senate President Page Cortez plans to meet with Edwards this week to finalize plans for a special session. The state's regular legislative session begins April 10.

Donelon has been pushing for a special session for months as insurance issues in Louisiana have worsened. As a result of a series of damaging hurricanes in 2020 and 2021, more than 610,000 residential property claims were filed in Louisiana, which has led to insurance companies paying out $18.4 billion in claims. However, this has led to 11 insurance companies that wrote homeowners policies in the state going insolvent.

Donelon wants to fix the issue by bringing more companies to write policies in the state, which he believes can be accomplished through resurrecting an incentive program. He is asking lawmakers to let him use $15 million in leftover premium tax revenue to get the incentive program started.