Louisiana government officials are attempting to shore up the commercial insurance market in the wake of the pullback of the state's largest writer in New Orleans.
Commissioner James Donelon and Gov. Kathleen Blanco held a meeting Tuesday with representatives of commercial insurance carriers to hear their concerns about the risks they face in the post-Katrina era in the state's catastrophe-prone coastal areas.
Last week, St. Paul Travelers announced it would not renew an undisclosed number of small and medium-sized commercial property accounts.
Company spokeswoman Jennifer Wislocki said the company had no plans to cut back on personal lines coverage and did not put a percentage on the amount of commercial policies that would be nonrenewed.
St. Paul Travelers is the state's largest commercial writer, with about 14 percent of the market share.
Bobbie Ann Clark, spokeswoman for the Louisiana Department of Insurance, said the scope of the cutback by St. Paul Travelers remains unclear.
"We are not even sure how many of their companies are affected," she said.
Ms. Clark said she knew of no plans by the other commercial writers in the state such as State Farm, with a 12.6 percent share, and Zurich Financial Group, with a 10.3 percent share, to institute similar cutbacks.
Last summer, Gov. Blanco and Commissioner Donelon engaged in a very public dispute with Allstate when the carrier announced plans to cut back wind and hail coverage. The dispute ended with a statement agreeing that all parties would work together, but reminding the carrier of its obligations under state consumer protection laws.
Since 1992 Louisiana has had a law unique to that state which prohibits any move by an insurer to unilaterally change or cancel a homeowners policy that has been in effect for more than three years.
With the commercial policies, regulators do not have a similar weapon, Ms. Clark said.
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