§2362. Purposes; public purpose
A.Louisiana currently is experiencing a crisis in the availability and affordability of
insurance for residential and commercial properties. Louisiana property owners and their
insurers sustained catastrophic losses in 2020 and 2021 from hurricanes Laura, Delta, Zeta,
and Ida. As the result of their losses and their assessment of the risk of loss from future
storms, many insurers have substantially reduced their participation in the voluntary market
for residential and commercial property insurance. With fewer insurers in the voluntary
market, competitive pressure on premium rates is reduced. Current underwriting practices
have resulted in a substantial increase in the number of Louisiana property owners forced to
obtain their property insurance coverage or
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§2362. Purposes; public purpose
A. Louisiana currently is experiencing a crisis in the availability and affordability of
insurance for residential and commercial properties. Louisiana property owners and their
insurers sustained catastrophic losses in 2020 and 2021 from hurricanes Laura, Delta, Zeta,
and Ida. As the result of their losses and their assessment of the risk of loss from future
storms, many insurers have substantially reduced their participation in the voluntary market
for residential and commercial property insurance. With fewer insurers in the voluntary
market, competitive pressure on premium rates is reduced. Current underwriting practices
have resulted in a substantial increase in the number of Louisiana property owners forced to
obtain their property insurance coverage or their coverage for wind peril from Louisiana
Citizens Property Insurance Corporation, the state insurer of last resort. Increased premiums
and assessments make property insurance coverage unaffordable for some property owners,
forcing them to sell or abandon their residential or commercial properties or preventing them
from restoring storm-damaged properties, causing some residents to leave or fail to return
to the state. The availability of property insurance at reasonable cost is essential to the
economy of the state. Owners cannot invest in and lenders will not finance the construction
and ownership of residential and commercial buildings without adequate property insurance
protection. The state has a vital interest in fostering the availability of property insurance at
reasonable cost.
B. The Insure Louisiana Incentive Program is adopted for the purpose of cooperative
economic development and stability in Louisiana by encouraging additional insurers to
participate in the voluntary property insurance market to increase the availability of property
insurance, increase competitive pressure on insurance rates, and reduce the volume of
business written by the Louisiana Citizens Property Insurance Corporation, thereby offering
a less expensive alternative to its policyholders and reducing Louisiana Citizens Property
Insurance Corporation's exposure to an increased deficit and future assessments.
C. The legislature hereby declares that assuring an adequate and affordable market
for insurance for both residential and commercial properties in this state is essential to the
economic viability of the state and its citizens, the assurance of an adequate and stable tax
base for the state and its political subdivisions, and the health, welfare, and safety of its
citizens. Accordingly, the establishment of the Insure Louisiana Incentive Program
implemented through public-private partnerships is declared and demonstrated to be an
essential public function and public purpose.