Politicians' primary objective is to get reelected. Insurance companies' primary objective is to make money. If we can all agree to these premises, then we might be able to make sense of the bills before the State Legislature this session. After record-breaking hurricane seasons the last two years and unprecedented construction cost increases & supply chain quagmires, it's an understatement to say that these last two years were extremely difficult ones for Louisiana homeowners and the companies that insure them. However, the battle for hearts, wallets, and votes in the legislature the next few months are worth paying attention to. Your safety and your financial best interest, depend on it.
We all get it: insurance companies are big, bad money-hungry machines, impervious to the suffering of their consumers. Some here are bad operators, all too willing to screw their customers to boost the bottom line. Heck, I'm in the middle of a legal dispute with my own carrier right now! However, understanding the challenges insurance companies face in Louisiana is the only way to secure a workable long-term marketplace to ensure that we all remain insured. If it's to difficult to do business here, and to unprofitable, they will go elsewhere. Attracting and keeping a sustainable supply of carriers is essential to keep prices competitive. If you have a mortgage, demand is constant!
As with every legislative session, there are good bills, bad bills, and those in between regarding insurance regulations in our state. However, while the governor, legislators and even our insurance commissioner have the average Louisiana's best interest in mind, in a best case scenario, I don't believe they thought through the consequences of these bills thoroughly. In a more pessimistic viewpoint, one might even argue that several of the legislators writing these bills are doing so to give red meat to angry yet uninformed consumers, in hopes of getting more votes the next time they appear on the ballot.
There is a definite middle ground amongst consumers, carriers, and (as with any issue) politicians. Finding it is essential to protecting the long-term best interest of Louisiana insurance consumers. In the coming weeks, I will delve more deeply into potential consequences for enacting some of this legislation, or in some cases for not enacting them. If you have questions, feel free to reach out to us. In the meantime, keep an eye on the legislation advancing through session. Your wallet and your well-being depend on it.