Louisianans shouldn’t subsidize the living choices of some, at least not to the extent suggested by special interests trying to ensure they can make a few more bucks.
Next month, the state Department of Insurance will approve new rates for Louisiana Citizens Property Insurance Corporation, the state-run insurer of last resort. Because of storm activity over the past year or so, the numbers of properties enrolled in it has tripled to 114,000 as private insurers exit or won’t write policies in particular areas, especially south of Interstates 10/12. This has caused a proposed dramatic surge in the rate requested, an average 63 percent hike for 2023.
That has led a group of real estate agents in New Orleans to call upon Republican Insurance Commissioner Jim Donelon, who not only sits on the Citizens’ board that asked for the increase but also gives final approval after actuarial study to a rate thus determined, to scale back the increase as it could cause a significant financial burden to homeowners. A group spokesman claims there’s no need for changing rates now and insinuated that taxpayers should eat at least some of the reserves collected because that “is the reason why government exists. Citizens is a nonprofit.”