La. Dept. of Insurance approves 63% Citizens rate increase

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BATON ROUGE, La. (WAFB) - The Louisiana Department of Insurance (LDI) has approved Louisiana Citizens’ request for a 63% rate increase on its residential property insurance policies beginning January 1, 2023. The rate increase will not affect Citizens’ current policyholders until they renew their policy after that date.

Citizens is the state’s insurer of last resort. Louisiana law requires Citizens’ rate for each of its policy types in each parish to be at least 10% over the highest qualifying market rate or 10% over the actuarial rate, whichever is higher.

The rate increase is almost totally a result of the increased cost of reinsurance for Citizens’ increased number of policies this hurricane season. The best way to reduce the burden of this and future Citizens rate increases is the Insure Louisiana Incentive Program, which is awaiting funding from the legislature.

“There’s no sugarcoating it — this increase is extremely painful but required by law to make sure Citizens can handle a potential future disaster for its many policyholders,” said Commissioner Jim Donelon. “My staff and I are working with the legislature to attract more insurers to the state through the use of a program that was highly effective following hurricanes Katrina and Rita, which will give Citizens policyholders, and all Louisianans, more and cheaper insurance options in the private market.”

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