Sen. Kirk Talbot discusses Louisiana insurance crisis with Elmwood business group

ELMWOOD, La. (WVUE) — The chairman of the state Senate’s insurance committee told members of the business community that insurance reforms passed this spring by the Louisiana legislature were necessary amid the ongoing premiums and coverage crisis.

Sen. Kirk Talbot (R-River Ridge) addressed the Elmwood Business Association’s luncheon on Tuesday (June 18). He said Louisiana has not been attractive to insurers or reinsurers, the companies who provide coverage for insurance companies.

“We’re showing them we know we have a problem, we know we live in ‘Hurricane Alley’ and we’re doing something about it,” Talbot said.

At the urging of Insurance Commissioner Tim Temple, lawmakers repealed Louisiana’s so-called “three-year rule,” which prevented insurers from dropping customers’ policies that had been in place for at least three years.

Talbot told the audience the rule has hurt, not protected, consumers.

“The three-year rule is unique to Louisiana, and no one in the world does it, no one in the country does it, it is something that has depressed competition here. And it’s something that is really more harmful to policyholders than it helps,” he said.

Soon, insurers can start dropping a percentage of existing policies.

“In January, we’re letting you know, insurance companies are going to be able to shed 5 percent of their riskiest policies, which is something that they can’t do now, which has caused them frankly, to either pull out of Louisiana, become insolvent or not pay claims,” Talbot said.

He said the claims process also was changed.

“One of the bills that I did — Senate Bill 323 — we revamped the entire claims process,” he said. “Anybody that has unfortunately had to make a claim in the last several years, I’m sure we’ll all agree, it’s not a fun process. It’s a confusing, convoluted process.”

Insurers now will have more time to settle claims resulting from a catastrophic event.

“I think we’ll all agree, when you have a major storm like a Katrina, you just can’t get an adjuster down here in time. And if you want it done right, and you want it done right the first time, and you want it done accurately, give them a little more time, like other states do,” Talbot said.

Louisianans are also facing high auto insurance costs.

“Our auto insurance rates are the highest in the country, we all know that,” said Talbot. “The rate of accidents with bodily injuries in our state is double the national average.”

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