{"id":35870,"date":"2026-07-14T20:27:00","date_gmt":"2026-07-14T18:27:00","guid":{"rendered":"http:\/\/stocks-future.com\/?guid=905c5866649b70d22fa4b6ef52fc4d4e"},"modified":"2026-07-14T20:27:00","modified_gmt":"2026-07-14T18:27:00","slug":"triple-i-louisiana-insurance-reforms-begin-to-deliver-rate-relief-but-challenges-remain-due-to-impacts-of-legal-system-abuse-fraud","status":"publish","type":"post","link":"https:\/\/stocks-future.com\/?p=35870","title":{"rendered":"Triple-I: Louisiana Insurance Reforms Begin to Deliver Rate Relief, but Challenges Remain Due to Impacts of Legal System Abuse, Fraud"},"content":{"rendered":"

MALVERN, Pa.--(BUSINESS WIRE)--Louisiana's property\/casualty (P\/C) insurance market posted its first broad rate relief this decade in 2025, but headwinds caused by legal system abuse persist, according to a new members-only Issues Brief<\/a> published today by the Insurance Information Institute<\/a> (Triple-I).<\/p><\/a><\/a>

\nP\/C premium rates fell statewide across all lines combined by an average of 0.4% last year, reversing a pattern of consistent increases from 2021 through 2024. The most dramatic improvement came in private passenger auto, where premiums dropped an average of 5.8%, generating a statewide reduction of more than $340 million.<\/p>

\nTriple-I\u2019s analysis of S&P Global Market Intelligence data showed approved personal auto insurance premiums in effect in the Pelican State have fallen 3.9% year-to-date as of May 2026, building on a 2.5% average decrease last year. The gains reflect declining accident frequency and early benefits from legislative reforms targeting legal system abuse.<\/p>

\nHomeowners Insurance Rate Growth Slowing<\/b><\/p>

\nHomeowners insurance rates continued to rise, but at a substantially slower pace. Premium rate growth slowed to 4.6% in 2025, from 10.4% in 2023. Nine rate decreases were filed by homeowners insurers in 2025, the highest number since 2020, while 17 new insurers have entered the state\u2019s homeowners market since 2024, injecting fresh competition.<\/p>

\n\u201cI am not satisfied with where rates are today and expect the reforms we\u2019ve made in recent years to reduce costs for all insurers,\u201d said Louisiana Insurance Commissioner Tim Temple. \u201cMy priority for 2026 is to continue improving the insurance market by protecting consumers and increasing affordability and long-term availability across the state.\u201d<\/p>

\nLitigation, Fraud Headwinds<\/b><\/p>

\nDespite the promising trajectory, significant headwinds persist. Louisiana\u2019s personal auto claims litigation rate remains more than twice the U.S. average, and bodily injury claims run nearly double the national norm. Legal system abuse, including misuse of assignment of benefits, rampant claim fraud and third-party litigation funding (TPLF), continues to inflate costs for policyholders.<\/p>

\n\u201cThe data show that legislative reform works,\u201d said Sean Kevelighan, CEO of Triple-I. \u201cBut the work is far from finished in Louisiana. Legal system abuse remains deeply embedded in the state\u2019s claims environment and sustained legislative action will be essential to making insurance reliably affordable for Louisiana families and businesses.\u201d<\/p>

\nTPLF, in which outside investors finance lawsuits in exchange for a share of settlements, has fueled a surge in nuclear verdicts of $10 million or more, which have more than quadrupled nationwide since 2020. Louisiana ranked among the top 10 states for such verdicts in 2024. Legislation to expand TPLF oversight in the Pelican State, reintroduced in 2026 after stalling in 2025, died again this June in committee.<\/p>

\nFocus on Resiliency<\/b><\/p>

\nOn the resiliency front, the Louisiana Fortify Homes Program<\/a> received $80 million in new funding for 2026 and expanded eligibility to inland parishes facing rising flood risk. The program offers homeowners up to $10,000 in grants to upgrade roofs to Insurance Institute for Business & Home Safety FORTIFIED\u2122 standards, with completed retrofits qualifying for hurricane premium discounts ranging from 16% to 49%, effective Jan. 1, 2027.<\/p>

\n\u201cResilient homes mean fewer claims, lower losses and ultimately lower premiums,\u201d said Kevelighan. \u201cPrograms like Louisiana Fortify Homes demonstrate how strategic investment in mitigation can attract more insurers to a market and broaden coverage availability. It is a model other states should study closely.\u201d<\/p>

\nAbout the Insurance Information Institute (Triple-I)<\/b><\/p>

\nSince 1960, the Insurance Information Institute<\/a> (Triple-I\u00ae) has been the trusted voice of risk and insurance, delivering unique, data-driven insights to educate, elevate and connect consumers, industry professionals, policymakers, and the media. An affiliate of The Institutes<\/a>, Triple-I represents a diverse membership accounting for nearly 50% of all U.S. property\/casualty premiums written. Our members include mutual and stock companies, personal and commercial lines, primary insurers and reinsurers \u2013 serving regional, national and global markets.<\/p>

\nTriple-I is a registered trademark of the Insurance Information Institute. All rights reserved.<\/i><\/p>

\nAbout The Institutes<\/b><\/p>

\nThe Institutes\u00ae<\/a> are a not-for-profit dedicated to helping people and organizations succeed in the essential disciplines of risk management and insurance. Through numerous affiliated business units and brands, we educate, elevate, and connect students, professionals, and organizations by equipping them with the knowledge, skills, and collaboration they need to tackle the most complex risk management and insurance challenges. Backed by more than 115 years as a trusted knowledge partner, we empower people and organizations to create a more resilient world.<\/p>

\nThe Institutes is a registered trademark of The Institutes. All rights reserved.<\/i><\/p> Contacts<\/b>

\nMedia Contact:<\/b>Media@iii.org<\/a><\/p>","protected":false},"excerpt":{"rendered":"

MALVERN, Pa.–(BUSINESS WIRE)–Louisiana’s property\/casualty (P\/C) insurance market posted its first broad rate relief this decade in 2025, but headwinds caused by legal system abuse persist, according to a new members-only Issues Brief published today…<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-35870","post","type-post","status-publish","format-standard","hentry","category-infos-businesswire"],"_links":{"self":[{"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/posts\/35870","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/stocks-future.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=35870"}],"version-history":[{"count":1,"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/posts\/35870\/revisions"}],"predecessor-version":[{"id":35871,"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/posts\/35870\/revisions\/35871"}],"wp:attachment":[{"href":"https:\/\/stocks-future.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=35870"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stocks-future.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=35870"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stocks-future.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=35870"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}