BATON ROUGE, LA – Louisiana’s property insurance market is showing clear signs of improvement, according to Commissioner Tim Temple, following a series of insurance reform measures enacted in 2024. Since the legislative session last year, the Louisiana Department of Insurance (LDI) has licensed 10 new homeowners insurers, while existing insurers have begun filing fewer, less costly rate increases—and in some cases, rate decreases for policyholders.
A Positive Shift in the Market
“Louisiana’s property insurance market didn’t get into a crisis overnight, and we aren’t going to get out of it overnight—but this data shows we are further along than I was expecting at this stage of the turnaround,” Commissioner Temple said. “Florida began its push for insurance reform in 2022 and started seeing similar results after about 18 months.”
Upon taking office in January 2024, Commissioner Temple focused on improving Louisiana’s regulatory reputation and worked closely with legislators to pass a comprehensive package of insurance reforms. These efforts aimed to make Louisiana a more attractive market for insurers and reinsurers, ultimately benefiting homeowners and businesses.
Momentum Continues in 2025
“I will push for more reform this year and continue fighting to stabilize property insurance rates for Louisiana families and businesses,” Temple said. “We are demonstrating that reform works on the property side. If we focus on auto insurance reform this session, I expect we’ll see similar results on the auto side as well.”
Rate Increase Trends Show Improvement
Rate increases have significantly slowed across multiple insurance sectors, indicating market stabilization:
- Homeowners Insurance: The statewide average market impact for approved rate changes in 2024 was +6.6%, a notable decrease from +14% in 2023 and +16.2% in 2022.
- Commercial Multi-Peril Insurance: The average market impact for 2024 was +3%, down from +6.7% in 2023 and +3.9% in 2022.
- Fire and Allied Lines Insurance: The average market impact for 2024 was +1.8%, a sharp decline from +5.8% in 2023 and +9.3% in 2022.
More Rate Decreases, Fewer Rate Increase Filings
In addition to slower rate hikes, insurers are filing fewer requests for rate increases and more for rate reductions:
- Homeowners Insurance: 50 rate increase filings in 2024, down from 80 in 2023 and 75 in 2022.
- Commercial Multi-Peril Insurance: 29 rate increase filings in 2024, down from 42 in 2023 and 34 in 2022.
- Fire and Allied Lines Insurance: 29 rate increase filings in 2024, down from 51 in 2023 and 41 in 2022.
Rate Decreases on the Rise
So far in 2025, LDI has approved seven rate decreases from residential insurers, ranging from 4% to 11%. This already exceeds the total number of rate decreases approved in previous years:
- 2024: 5 rate decreases
- 2023: 6 rate decreases
- 2022: 1 rate decrease
A Path Forward for Louisiana’s Insurance Market
Commissioner Temple remains committed to continuing reforms that foster stability, competition, and affordability within Louisiana’s insurance market. While progress is being made, he emphasized that the state must stay the course to ensure long-term relief for policyholders.
For more updates on Louisiana’s insurance market, visit www.ldi.la.gov.