La.’s Governor Blanco Promises Insurance Rate Relief

Governor Kathleen Babineaux Blanco issued the following statement on her Web site, regarding her plans to address recent insurance rate hikes for homeowners in Louisiana:

“We need insurance rate relief and we need it now! I’m doing everything in my power to see that we have affordable insurance in Louisiana. The huge spike in rates has hit people where it hurts the most – in the pocketbook. None of us will be satisfied until people see their insurance bills go down. Here’s my three-step plan to address insurance affordability:

“First, I stand prepared to immediately drive down rates by covering a substantial amount of The Louisiana Citizens Property Insurance Corporation’s debt obligation. The debt obligation will be covered by a significant contribution – to the tune of hundreds of millions of dollars – from the pending surplus. This is on top of the $50 million already appropriated to the disaster fund. This will drive rates down for everyone.

“Later this month – when we have an accurate fiscal outlook – I’ll announce the exact amount of surplus dollars devoted to additional relief for future years. This relief will be balanced with our very real need for road and infrastructure upgrades, expansions in economic development, health care improvements and other obligations the state must meet to move forward. The important thing to know is that we will cover the LA Citizens debt obligation for years to come. This means money in the bank for the people of Louisiana.

“Rate relief is only part of the solution. Second, over the past ten years insurance companies have pulled out of Louisiana at an alarming rate, and I’m fighting to get them back. We must pursue common sense measures to attract more insurance companies to Louisiana so competition will drive rates down and spread the risk among more companies. On October 10th, I will continue my series of discussions with industry sectors and meet with reinsurers, (the companies that insure the insurance companies) urging them to give insurance companies the backup they need to continue operating in Louisiana.

“Finally, I’ve called on the President and Congress to make this issue a national priority. Something is plain wrong when insurance companies are set up to put profits before citizens after a catastrophe. If we don’t come up with a workable national solution, you’re going to see a large portion of this country that is simply uninsurable. This is outrageous. I’m addressing this at the state level, but we must insist on a nationwide solution.”

Source: Louisiana Governor’s Office, www.gov.state.la.us.

Topics Louisiana