Filed Under:Claims, Litigation

La. Commissioner Lowers Last Resort Insurer’s Rate Hike Request

NU Online News Service, March  18, 3:04 p.m. EST

Louisiana Citizens Underwriting IncomeInsurance Commissioner Jim Donelon has approved an average 6.5 percent rate increase for the state’s last resort insurer, the Louisiana Dept. of Insurance confirmed.

Louisiana Citizens Insurance Corp., which has about 115,000 property insurance policies in the state, had originally asked for a 9 percent rate hike. It is obligated to make a rate filing once a year.

The residual insurer’s board is meeting today to move ahead with or reject the reduced rate hike Mr. Donelon approved.

Louisiana Citizens comes up with the filing by comparing market rates and its own actuarial insurance rates in each parish, adding 10 percent, and then selecting whichever rate is the highest.

Last year, John Wortman retired as CEO of Louisiana Citizens and Richard Robertson, general manager of the Michigan Basic Property Insurance Association (Michigan FAIR Plan), took over.

According to Highline Data, Louisiana Citizens was the third-largest homeowners multiperil writer in the state as of 2009 with a 6.4 percent market share. State Farm was first with 27.9 percent, and Allstate was second with 14 percent.

Highline Data is a part of Summit Business Media, which also owns National Underwriter and

Featured Video

Most Recent Videos

Video Library ››

Top Story

What if Hurricane Andrew happened today?

A new report from Swiss Re postulates what the insured losses would be if a storm like 1992’s Hurricane Andrew were to barrel through South Florida in 2017.

Top Story

9 solar eclipse safety tips & risk concerns you need to know for Aug. 21

An estimated 500 million people across North America will be impacted as the moon passes between the sun and Earth in the 70-mile wide path of the total eclipse on Aug. 21, 2017.

More Resources


eNewsletter Sign Up

Claims Connection eNewsletter

Breaking news on disasters, fraud, legal trends, technology, and CE initiatives for the P&C claim professional – FREE. Sign Up Now!

Mobile Phone

Advertisement. Closing in 15 seconds.