Navigating Louisiana's Insurance Crisis: Hurricanes, Insolvencies, and the Road to Recovery

Hurricanes Drive Louisiana Insured Losses, Insurer Insolvencies

Severe hurricane damage in recent years has led to major losses by writers of Louisiana homeowners’ insurance and to the insolvency of eight insurers.

The Impact of Natural Disasters on Insurance Industry

Louisiana homeowners’ insurers had a combined ratio of 461.9 in 2021. Combined ratio represents the difference between claims and expenses paid and premiums collected by insurers. A combined ratio below 100 represents an underwriting profit, and a ratio above 100 represents a loss.

The Role of Technology and Policy in Mitigating Losses

In response, the Louisiana Insurance Guaranty Association (LIGA) has begun to restructure its management of claims for policyholders of insolvent insurers using property estimating technology from Verisk, a global data analytics provider.