Governor Jeff Landry appeared before the Louisiana House Insurance Committee today to advocate for House Bill 576, a measure designed to grant the state's insurance commissioner enhanced authority to reject auto insurance rates deemed excessive.
"If we empower the insurance commissioner with the ability to hold those that are profiting off of our misery accountable, then we’ll have the power to ensure that the rates are lowered every time you touch the law," Landry asserted.
Landry highlighted that insurance companies have collected $1.4 billion more in premiums than they have paid out in claims. He emphasized that, since auto insurance is a mandatory purchase, the market should not be left entirely to free-market dynamics. "In all of our neighboring states around us, the insurance commissioners can review rates and reject them if they are excessive if the profits are unreasonable, like it seems to be here in Louisiana," Landry said.
The Governor also pointed out the Louisiana legislature has passed several laws in past years with insurance industry input that should have led to lower premiums, but somehow the rate reductions never seemed to materialize.
However, Insurance Commissioner Tim Temple expressed concerns about the bill, warning that it could introduce excessive regulation and potentially deter insurance providers from operating in Louisiana. "This is more red tape. This is more regulation. This is moving toward the direction of California," Temple cautioned.
Despite the differing viewpoints, the House Insurance Committee advanced HB 576 with a 13-4 vote, moving the bill forward for further consideration.
Governor Landry's testimony underscores his administration's commitment to addressing the high cost of auto insurance in Louisiana, which remains among the highest in the nation. He has also proposed additional measures, including increasing the "No Pay, No Play" threshold from $15,000 to $100,000, aiming to reduce payouts to uninsured drivers and lower premiums for insured motorists.
As the legislative session progresses, HB 576 will continue to be a focal point in the broader discussion on insurance reform in Louisiana.
HB 576 is sponsored by district 72 Representitive Robert Carter.
