Louisiana’s special legislative session begins Dec. 8 and insurers are urging lawmakers to exercise caution in when it comes to making decisions regarding solutions to insurance issues or how to spend the state’s surplus.
In an announcement released by the Property Casualty Insurers Association of America (PCI), the insurer trade group warned that “misguided legislation” with the potential for long-term consequences could advance during the 10-day session.
Greg LaCost, assistant vice president and regional manager for PCI, explained, “Many of the insurance issues require thorough study and discussion that is difficult to achieve within the allotted time frame. Without clear spending priorities, the state may not maximize the opportunity to mitigate future losses or stimulate economic recovery. We are prepared to work with lawmakers on finding solutions during the session, but many of the answers do not require more government intervention.”
During 2006 lawmakers will have met for two special sessions and a regular legislative session. While the legislative debate has been contentious, ultimately lawmakers have rejected many of the proposals that PCI believes would be most detrimental to consumers and the insurance marketplace.
“Louisiana should encourage new capital to enter the property insurance market by enacting greater regulatory flexibility, eliminating the rating commission and streamlining the regulatory process,” LaCost said. “PCI supports proposals that enhance market flexibility and removes regulatory or political barriers to free, fair and competitive markets.”