APCIA warns of misleading narratives as Louisiana legislature discusses insurance reform

By Michael Loney

April 21 - (The Insurer) - The American Property Casualty Insurance Association (APCIA) has said some of the debate around insurance reform in Louisiana’s legislature is misleading, while the trade body also called for legal system abuse reforms in the state.

Louisiana’s 2025 legislative session began on April 14 and runs until mid-June.

Discussing the start of the legislative session in a statement issued on April 18, Hilary Segura, department vice president of state government relations at APCIA, said: “Much of the discussion around home and auto insurance in Louisiana this week is long on rhetoric but short on facts.”

Segura said that over the last 10 years Louisiana insurers on average have not been profitable, resulting in turmoil in the property insurance marketplace with consumers facing challenges with the cost and availability of insurance.

“While recent years of catastrophic hurricanes have impacted the property insurance market in Louisiana, legal system abuses have a dramatic impact on what consumers and businesses pay for insurance,” she said. “Misuse of the legal system is a key driver of the insurance affordability and availability crisis.”

Segura continued that several bills have been filed this session to address legal system abuse in Louisiana, and said APCIA “looks forward to working with the legislature and our industry partners to advance reforms that are in the best interests of Louisiana consumers, not trial lawyers.”

On April 10, Louisiana Insurance Commissioner Tim Temple announced a package of auto insurance reform legislation and general insurance bills that he is supporting during the 2025 legislative session.

INSURERS AND LAWYERS ‘TWO LITTLE BOYS CRYING WOLF’

Louisiana Governor Jeff Landry when opening the legislative session on April 14 said the debate “over the ridiculous cost of insurance” has “become a crisis that has gripped the nation and this state.”

“Year after year, people from both sides show up to gaslight us,” he said. “Year after year, we are promised by insurance companies that if we pass this or if we pass that, they will lower rates. It never happens.

“Year after year, we are promised by lawyers that if we conform the laws to favor the plaintiffs they represent, it won’t affect rates. That never happens either.

“The only thing worse than a little boy crying wolf is two little boys crying wolf!”

Landry said that last year the legislature worked to pass 27 bills aimed at addressing insurance issues by enhancing the business climate for insurers. This included extending the claims adjustment period after natural disasters without penalizing the insurance companies.

The governor continued that rates have yet to go down.

“Our families continue to struggle with insuring their homes and their vehicles. This is completely unacceptable! The progress we're making in Louisiana will be hindered if we don't resolve these issues.

“Let me be clear: both sides are to blame! I'm not here to support lawyers or insurance companies. I'm here to help the Louisianians who elected us.”

The governor has proposed legislation to restrict attorney advertising that promises monetary outcomes through dubious testimonials and deceptive claims for monetary rewards.

He also said the legislature should eliminate the presumption of injury without evidence of a pre-existing condition or other causes, bring medical transparency to the collateral source rule by adopting the Texas model and further limit recovery for drivers who drive without insurance.

He also said that bodily injury damages currently exclude the first $15,000, and suggested raising this to $100,000.

Landy also said the state’s insurance department needs to be given the power to lower rates.

“I believe it’s time the Commissioner of Insurance should have the authority to reject excessive rates, not just inadequate ones,” he said. “The proposed legislation expands the Commissioner's oversight by removing legal exemptions and requiring rate filings for more than just informational purposes.”