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The truth about insurer profits in Louisiana. Insurance Commissioner Tim Temple is a former insurance executive whose family owned an insurance company. Temple received nearly 75% of his campaign contributions from the insurance industry. During this legislative session, Commissioner Temple has pushed a radical, pro-insurance agenda that pads insurer profits by stripping policyholders and accident victims of their rights. To advance that agenda, Commissioner Tim Temple has pushed misinformation about the profits of insurers operating in Louisiana. Here are the facts about insurer profits in Louisiana: As Warren Buffet (who owns GEICO) explains in this shareholder letter , auto insurance companies make most of their profits from investing your premium dollars, not underwriting insurance policies. Nevertheless, Louisiana was one of 18 states to make an underwriting profit, according to the most recent NAIC profitability report. Louisiana had the third-best underwriting profit nationally according to the report. But investments are where they make the big bucks: According to a recent report from Weiss Ratings , auto insurers operating in Louisiana made $1.3 BILLION in investments between 2015-2024, which comes to $5.77 for every dollar lost in underwriting. While the highest rates in the nation are a key chunk of insurers' big profits in Louisiana, another significant component is denying claims. Private passenger liability claims closed without payment has increased from 39.2% of total claims in 2015 to 45.2% in 2024, according to Weiss. The truth is BIG INSURANCE COMPANIES are raking in record profits while Louisiana families and small businesses are paying unaffordable rates and seeing their claims denied at an alarming rate.

5 Facts About Louisiana's Insurance Market. 1) High Rates: Louisianans pay the highest auto insurance premiums in the nation ($3,481 per year) and the 5th highest home insurance premiums ($4,291). - Marketwatch/Bankrate, June 2025 2) Huge Profits: Auto insurers operating in Louisiana have the 3rd highest underwriting profit in the country, meaning they charge high premiums and pay out less in claims. - NAIC, April 2025 3) $55 profits for every $1 lost: Since 2004, home insurers operating in Louisiana made $88.3 billion investing your premium dollars and reported just $1.6 billion in underwriting losses, meaning they made $55 profit for every dollar they lost. - Weiss, May 2025 4) Not paying Claims: Home insurers operating in Louisiana denied 44.6% of claims filed in 2024, which is significantly above the national average. Auto insurers denied 45.2% of private passenger liability claims in 2024. -Weiss, May 2025 5) Tort Reform Does Not Work: Rates are still high, insurers are making record profits, while denying claims at an alarming rate. It’s obvious: tort reform guts consumer protections to pad insurer profits.

Louisiana families struggle, as corporate fat cats live high on the hog! The latest numbers are in, and they're appalling. In 2024, Property & Casualty insurers reaped a staggering $170 BILLION in profits —a 91% jump from 2023 and a jaw-dropping 330% surge from 2022! Meanwhile, their executives are rolling in dough, with 9 of the top home insurers' executives pocketing a whopping $310 MILLION in compensation. Who's footing the bill? Sadly, it is Louisiana policyholders . Louisianans pay the second-highest annual premium in the nation—with t hat number expected to rise another 27% by the end of 2025 . Nevertheless, year after year, the industry and its allies in the legislature pass tort reform laws that gut consumer protections. As a result, nearly half of all claims in Louisiana are closed without payment. Due to sky-high rates, a lax regulatory environment, and weak consumer protections, property insurers operating in Louisiana have raked in a shocking $55 in profit for every dollar they have lost over the last 20 years. Moreover, automobile insurers in Louisiana are also making out like bandits, as rates are among the highest in the nation despite auto insurers operating in Louisiana having the 3rd highest profit and some of the best loss ratios in the country. We cannot afford to sit idly by while Louisiana families and small businesses struggle to get by and these corporate fat cats live high on the hog! Tort reform does not lower rates. It pads the profits of big insurers and stuffs the pockets of executives. We must pass real insurance reforms that lower rates, hold insurers accountable, and strengthen consumer protections.

Rates Continue to Climb as Claims Paid Decrease  Weiss Ratings, the nation's leading independent rating agency, issued a bombshell report that sheds light on "three alarming trends" with property insurers operating in Louisiana. The big takeaway: Tort reform does not work. The central argument from proponents of tort reform is that cutting costs for insurers will result in savings for policyholders. However, the data suggests that insurers are closing a startling number of claims without payment as rates continue to climb. According to Insurify , Louisiana rates are expected to rise another 27% in 2025, following a 38% increase in 2024. Additionally , Weiss Ratings found that eight property insurers who received taxpayer dollars through the Insure Louisiana Incentive Program "have a long history of poor business performance" and "above-average claims denials." Three Alarming Trends Insurance companies operating in Louisiana closed nearly half of homeowners' claims (44.6%) with no payment in 2024, which is significantly higher (+2.7%) than the national average and 18.9% higher than the national average in 2004. This highlights the devastating effects of tort reform. According to Weiss Ratings , seven companies operating in Louisiana closed more than 50% of their claims with no payment. Kin Insurance (68.3%) and Spinnaker Insurance (60.6%) closed more than 60% of claims with zero payment. Insurance companies operating in Louisiana have raked in "$88.3 billion from investments and other sources," far exceeding their "$1.6 billion in underwriting losses," which insurers often use to justify rate increases and tort reforms that gut policyholders' rights. "That’s $55 in profits for each $1 of underwriting losses," according to Weiss. Insurers operating in Louisiana moved $27.1 billion off the books to affiliates, effectively hiding these funds from regulators, lawmakers, and the ratepaying public. This could also account for a significant percentage of the underwriting losses reported by insurers operating in Louisiana. “Louisiana homeowners are being shortchanged by insurers prioritizing profits,” said Dr. Martin D. Weiss, founder of Weiss Ratings. “Regulators must act, and homeowners should choose insurers with fair practices and strong ratings.” Poor Stewards of Taxpayer Dollars The Insure Louisiana Incentive Program used taxpayer dollars to encourage insurers to write policies in Louisiana, particularly in storm-prone areas and to help depopulate the rolls of Citizens, the insurer of last resort. According to Weiss , the eight insurers approved to receive grant funds have reported "net underwriting losses of $357 million" over the last ten years. These insurers have shifted $174 million in fees to affiliate companies, off the books and out of sight of regulators, which accounts for 48.4% of their total underwriting losses. "On average, the eight companies closed 42.1% of claims with no payment in 2022, an even higher 45% in 2023, and an alarming 51.1% in 2024," according to Weiss. This disturbing trend demonstrates that insurers cannot be trusted to act in the public's interests with taxpayer dollars, as well as the devastating effects of tort reforms, which make it harder for policyholders to file claims. "We've heard the insurance industry repeatedly promise that tort reforms will reduce costs and ultimately lead to savings for policyholders. Sadly, we have seen rates continue to climb as the number of claims paid decreases," said Ben Riggs, executive Director of Real Reform Louisiana. "We cannot continue to trust and cater to the insurance industry. Louisiana families and small businesses desperately need real insurance reforms that lower rates, protect policyholders, and hold insurers accountable."

Top 3 Reasons Louisiana Has High Insurance Rates Louisiana is the most unaffordable state for insurance in the nation,  with nearly $1 out of every $10 earned going to insurance costs. Here are the top 3 reasons why.

Home insurance rates are increasing in Louisiana, despite Commissioner Tim Temple's tort reforms that gutted consumer protections.

Louisiana Senate Debates Lax Regulation and Excessive Insurance Rates The Senate Insurance Committee met on Friday, March 14th. There was a robust discussion between Senator Royce Duplessis and Insurance Commissioner Tim Temple about the commissioner's authority, following previous testimony that Louisiana's lax laws do not allow the commissioner to reject rate increases for being excessive. This conversation is important because Louisiana is among the most expensive states in the country for insurance, with nearly 10% of median household income going to insurers. The Law The statute in question is LA Rev Stat § 22:1452 (C)(6) , which states that "no rate in a competitive market shall be considered excessive." Furthermore, the statute defines "excessive" as "a rate that is likely to produce a long-term profit that is unreasonably high for the insurance provided." Commissioner Temple's Previous Testimony In a prior meeting of the Joint Insurance Committee , Commissioner Temple stated that "The Department's role is to look at it [rate filing] and make sure the actuary's work matches; that the numbers add up...We look at it to make sure the rate is adequate and not unduly discriminatory...Our role is not to look and determine whether we think it is right or high or low...If you will, it's to check their math." He repeated that sentiment, reading from a written statement to kick off the March 14th hearing, that "my role is to ensure that property & casualty rates are adequate, actuarily justified, and not unduly discriminatory." These comments are consistent with the authority granted to the commissioner by Louisiana law. Does Louisiana have a competitive market? Louisiana law plainly states that "no rate in a competitive market shall be considered excessive." So Senator Duplessis twice asked Commissioner Temple if Louisiana's market was competitive. Both times Temple responded that Louisiana has a competitive market, though he would like more competition. Commissioner Temple has repeatedly said that Louisiana's high insurance rates were due to a lack of competition and used this claim to promote industry-friendly legislation that strips policyholders of their rights. Has Commissioner Temple ever rejected a rate for being excessive? Senator Duplessis also asked Commissioner Temple and his staff multiple times if the Department of Insurance has rejected any rate increases for being excessive. Nichole Torblaa, the department's Chief Actuary, said, "We have deemed rates to be not actuarily justified." Later the department's deputy general counsel interrupted Commissioner Temple to clarify his comments after Temple claimed he had the authority to reject an excessive rate: "He's using the word excessive because you are, but what he's referring to is a high rate not comparable to the risk, which ends up being not actuarily justified." This was a theme throughout the hearing. Commissioner Temple repeatedly conflated the terms "excessive" and "actuarily justified." Profits “They don’t lie; they just don’t tell you unless you ask the right set of questions. The regulator won’t necessarily know what the insurance company is doing or what goes into their models. Heck, we don’t even know half the models’ names.” - Rich Piazza, former chief actuary for the Louisiana Department of Insurance Piazza's quote demonstrates the problem with a lax regulatory system that simply checks insurer's math. Big insurance companies employ armies of actuaries and lawyers who know how to build complex mathematical models that can justify any rate. Moreover, immediately after taking office, Commissioner Temple eliminated an internal rule that capped the amount of expected profit insurers could build into rate filings with the state. With no regulatory authority to reject excessive rates and no caps on expected profits, it is not surprising that expert testimony before the Senate Judiciary A committee revealed that some of the rate filings reviewed in Louisiana contained "really, really high" profit factors. As a result, Louisiana's personal auto insurance loss ratios (proxies for profit) were 9% better than the national average in 2023, and at least 5% better than each of our neighboring states: Arkansas, Mississippi, and Texas. It is also consistent with a detailed joint study from faculty at Harvard and Columbia, and a member of the Fed Reserve Board of Governors that found “higher [insurance] premiums are being charged in states where regulators apply less scrutiny to requests for rate increases.” Click here to watch the entire hearing from March 14, 2025. Click here to read expert's bombshell report on Louisiana's insurance crisis.