Louisiana’s new Insurance coverage Commissioner Tim Temple plans to fast-track proposed reforms to sort out the state’s insurance coverage disaster and has informed insurance coverage firms and policyholders to anticipate “vital variations” as he takes up the mantle from Jim Donelon.

Temple (pictured), who was sworn into workplace on January 8, has referred to as for a particular session in early 2024 to push modifications to property insurance coverage legal guidelines however stated congressional redistricting points took priority at Louisiana’s legislature this month.

Proposals shall be heard within the common session, which begins March 11.

“We’re centered on making a roadmap of options by partaking with insurance coverage firms, client advocacy teams, state lawmakers, brokers, and policyholders to establish the elemental issues and lay out regulatory modifications that have to be made,” stated Temple.

“Due to the timing and incapability to push for a particular session, we will ask the legislature to fast-track these options that we provide you with, with the intent of getting them to the governor’s desk as quickly as potential.”

‘Roadmap of options’ to alleviate Lousiana’s insurance coverage woes

Temple is concentrated on making the state a gorgeous marketplace for insurers, attractive extra rivals to usher in extra choices and, hopefully, affordability for shoppers.

Talking to Insurance coverage Enterprise, he stated he has “hit the bottom working” somewhat over every week since his inauguration.

“All people that I communicate to on this trade that is been in it for any variety of years – and I am speaking to some of us which were at it for 40, 50 years – all agree that is the worst insurance coverage atmosphere that they’ve ever skilled,” Temple stated.

“What that interprets to on the client degree is unavailability, and even when insurance coverage is obtainable, it’s actually approaching or exceeding the affordability threshold for a lot of people, households, and companies.”

Steep losses from hurricane seasons in 2020 and 2021 have contributed to a mass exit of insurers in Louisiana. Much less competitors and rising prices as a result of inflation have pushed up insurance coverage costs for shoppers.

“My precedence is to make Louisiana extra fascinating for insurance coverage firms by creating a gorgeous market they wish to come and do enterprise in,” Temple stated.

What can Louisiana anticipate from its new Insurance coverage Commissioner Tim Temple?

Modifications are forward for the Louisiana Division of Insurance coverage (LDI). Temple stated his coverage priorities diverge from these of his predecessor, Donelon, in a couple of methods.

One is that Temple opposes the insurer incentive program that got here out of final 12 months’s particular session. This system provided insurance coverage firms taxpayer funds to write down extra insurance policies within the state. Temple stated he wouldn’t be asking for extra funding for this system shifting ahead.

Temple does assist the Fortify Houses program, which grants as much as $10,000 for owners to improve their roofs to requirements set by the Insurance coverage Institute for Enterprise & Dwelling Security. He stated the LDI is wanting into totally different funding mechanisms to make this system extra everlasting.

“The present programme is designed in order that now we have to go earlier than the legislature yearly to ask for funding,” Temple stated.

“I’m taking a look at a few alternative ways to create a gentle funding supply so the trade sees that this can be a long-term programme and will not be topic to budgetary restraints that happen from 12 months to 12 months.”

One other precedence for Temple is elevating the usual of evaluate for insurance coverage firms concerning their monetary solvency and reinsurance applications. The commissioner stated that new entrants who wish to write in extremely uncovered areas should exhibit that they’ve “greater than sufficient” reinsurance in place ought to catastrophic occasions happen.

“I actually wish to work with the trade to create that aggressive market, however I additionally wish to maintain them accountable,” Temple stated. “Policyholders and insurance coverage firms can anticipate vital variations shifting ahead.”

Temple additionally addressed the false binary that always comes with regulatory reforms.

“Typically, if you hear individuals speaking about modifications to the regulatory atmosphere that may be in favour of the trade, they suppose that it is binary, which suggests if it is good for the trade, then it should be unhealthy for the patron, or if one thing is nice for the patron, then it should be unhealthy for the trade,” he stated. “I do not imagine in that. I believe there’s a stability.”

Louisiana Insurance coverage Commissioner Tim Temple on a ‘collaborative strategy’ to regulation

A local of DeRidder, Temple has labored for over 20 years within the insurance coverage trade, serving as president of Temptan, a family-owned funding administration enterprise in Baton Rouge.

He gained the election for the state’s high insurance coverage official in October after his opponent dropped out of the first. Temple replaces Jim Donelon, who served as Insurance coverage Commissioner for 17 years.

Temple informed Insurance coverage Enterprise that the seed of his intent to run for commissioner was planted in 2017 when Donelan introduced he wouldn’t search a fifth time period.

“I’m at an age and stage of my life the place I felt I had the time, power, and expertise to do some public service, and insurance coverage has been my life; it has been my background,” Temple stated.

“We’ve by no means had an Insurance coverage Commissioner with related expertise within the insurance coverage trade. So, I hope to deliver my understanding of the complexities of insurance coverage to this workplace as a result of I believe we will positively impression the lives of each particular person, household, and enterprise in our state.”

As he equipped for the arduous work and discussions over the following few months, Temple emphasised he would take a “collaborative, engaged” strategy with stakeholders.

“I wish to hear from the trade to make this state one the place firms can thrive however on the identical time, ship a product that customers can afford,” he stated.

“I wish to have these conversations; I wish to take note of the issues which can be vital to the trade, to make it extra engaging whereas, on the identical time, defending the patron from the unhealthy actors on the market.”

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