Description: Find out how the Insure Louisiana Incentive Program has spurred economic recovery by encouraging insurance companies to write over 17,000 policies, providing relief to homeowners in vulnerable areas. Discover the impact of this initiative and the companies leading the way.
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Louisiana has seen remarkable progress in its efforts to enhance insurance coverage through the Insure Louisiana Incentive Program. Commission Jim Donelon recently announced that insurance companies have successfully written more than 17,000 policies as of May 31. This landmark achievement has provided immediate relief to thousands of homeowners, particularly in vulnerable areas, and has significantly contributed to the state’s economic recovery.
The Insure Louisiana Incentive Program was introduced during the 2022 legislative session to incentivize insurers to write residential and commercial policies, with a particular focus on southern parts of the state. Through this program, insurers receive matching grants, making it more appealing for them to participate and reduce the volume of business written by the state’s insurer of last resort, Louisiana Citizens.
Commissioner Jim Donelon expressed his satisfaction with the program’s success and highlighted its positive impact on homeowners. He stated, “These results show the program is working as intended to provide immediate relief to thousands of homeowners who would otherwise be without an affordable policy. Unfortunately, many more of our friends and neighbors still need help.”
SafePoint Insurance and its affiliate Cajun Underwriters (CURE) have played a vital role in this initiative by taking an additional 20,000 policies out of Louisiana Citizens during the upcoming round of depopulation. This move demonstrates their commitment to bolstering the insurance market and supporting homeowners in their time of need.
The policies written to date have amounted to an impressive $53 million in premium, providing a significant financial boost to the insurance sector in the state. Jefferson Parish, which includes Metairie, has seen the most policies written, with 577 policies benefiting homeowners in the region. Following closely are East Baton Rouge (521), Lafayette (509), and Saint Tammany (469).
Commissioner Donelon urges Citizens policyholders to act promptly and reach out to their agents for possible opportunities to be picked up by SafePoint or CURE. He emphasizes the importance of reducing the number of Citizens policyholders to facilitate the state’s economic recovery. In recent months, there has been an increase in depopulation requests that remain unfulfilled, making it crucial to address the issue promptly.
The Insure Louisiana Incentive Program has garnered significant support, with at least eight insurance companies approved to receive grant funds to participate. These companies have met strict criteria, including a minimum capital and surplus of $10,000,000, a strong financial strength rating of AM Best “B+” or Demotech “A,” and a minimum risk-based capital ratio of 400%.
In conclusion, the Insure Louisiana Incentive Program has proven to be a driving force behind the state’s economic recovery, providing vital insurance coverage to thousands of homeowners in vulnerable areas. The successful collaboration between insurance companies and state initiatives continues to inspire confidence in the insurance market’s growth. As the program progresses, it is expected to encourage more insurers to participate, further boosting the state’s insurance landscape and benefiting homeowners throughout Louisiana.
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