Incoming insurance commissioner, pushes for special session on property insurance

The incoming Insurance Commissioner, Tim Temple, is urging the Legislature to convene a special session in January to pass a series of laws aimed at attracting new insurance companies to the state of Louisiana. Temple, a Republican with two decades of experience in the insurance industry, won his post after his sole challenger withdrew from the race. He plans to address laws that he believes set Louisiana apart from other states.

Among the changes Temple hopes to implement are modifications to Louisiana’s “bad faith” law, a revision of the rule that prevents insurers from dropping policyholders who have maintained coverage for three years, and the removal of the requirement for insurers to seek prior approval from the department before making policy changes. Additionally, Temple aims to end the current policy of limiting insurers to raising rates only once a year.

Temple emphasizes the need for the Department of Insurance to be more welcoming to insurance companies while still holding them accountable. He is actively seeking input from various stakeholders, including insurance companies, agents, consumers, and attorneys, with the primary goal of revitalizing the state’s struggling property insurance market.

Recognizing the significant challenges posed by climate change and the resulting increased disaster risk, Temple suggests that a regional or national insurance product may be necessary to address these issues effectively.

Temple is not in favor of allocating additional funds to the incentive fund established by the Legislature to attract insurers to the state. While he appreciates grant programs aimed at fortifying homeowners’ roofs, he is cautious about advocating for further funding for such initiatives.

Temple’s approach aligns with the insurance industry’s priorities but emphasizes his commitment to consumer advocacy. He intends to work closely with consumer advocates and trial attorneys to ensure that the special session agenda reflects a balanced approach.

Temple acknowledges that the property insurance crisis extends beyond Louisiana and may require broader solutions. He suggests exploring partnerships with other Gulf Coast states to create insurance products that cover what the private market doesn’t, although he remains wary of excessive government involvement. He also suggests that it may be time to discuss a national program to address insurance gaps.

Consumer advocacy groups, such as Real Reform Louisiana, emphasize that Louisiana’s insurance crisis is primarily driven by increased weather-related risks. They oppose any efforts that could restrict consumers’ access to the courts and favor large insurance companies.

In summary, Tim Temple, the incoming Insurance Commissioner of Louisiana, is advocating for legislative changes to attract insurers to the state, address property insurance issues, and balance industry interests with consumer protection in the face of climate change-related challenges.