Louisiana Gov. Jeff Landry (pictured left) and Insurance Commissioner Tim Temple (pictured right) have put forward different views on how to address the state’s high auto insurance premiums.
The two officials outlined their positions in separate press conferences, with both calling for reform but disagreeing on the root causes and proposed solutions.
Landry’s plan includes several proposed changes, such as limiting attorney advertising, expanding tort reform, increasing enforcement on uninsured and distracted driving, and prohibiting the use of credit scores in underwriting.
He also wants insurers to offer at least a 5% premium discount to large trucks that use dashboard cameras and is seeking changes to penalties for drivers with coverage lapses.
Landry said the reforms aim to bring fairness and accountability, saying the debate in recent years has often favored either trial lawyers or insurers, but not consumers.
“For far too long inside of this very building, there has been a battle waged between insurance companies and trial lawyers,” Landry said. “Let me be clear, I believe both sides have plenty of blame to go around. So today, I'm not here to help any lawyers and I'm not here to help any insurance companies. I'm here to help the citizens of this state.”
Landry also argued for enhanced rate oversight powers for the insurance commissioner, citing what he claimed were favorable insurer profit margins in Louisiana compared to Florida and Texas.
“The amount of money that insurance companies make in Louisiana is more than they make in Florida and Texas, and that's wrong,” he said.
Temple responded to this, saying he already has the authority to deny rates that are too high and regularly exercises that power.
“If it is too high, we instruct the company to reduce it or the rate will be denied,” Temple said. “While companies sometimes comply by reducing the rate or withdrawing it altogether, I do not approve rates that are too high. Period.”
Temple challenged Landry’s use of loss ratio data as an indicator of profit, saying loss ratios are not a direct measure of insurer profitability.
He cited figures from the National Association of Insurance Commissioners indicating that Louisiana insurers have experienced an average annual loss of nearly 8% over the past decade – three times the national average and more than twice that of Texas.
Temple said the situation is more severe in commercial auto lines, where insurers have averaged losses exceeding 30% annually. That figure is five times the national average and more than double the rate in Texas.
There is evidence to support Temple’s sentiment, as Louisiana has grappled with insurer solvency. Between 2021 and 2023, over a dozen insurers became insolvent, and more than 50 ceased writing policies in hurricane-prone areas.
Consequently, the number of policyholders relying on the state's insurer of last resort, Louisiana Citizens Property Insurance Corporation, increased from 35,000 to 132,000.
In 2023, the Louisiana Insurance Guaranty Association (LIGA) raised its assessment cap from 1% to 2% of net direct written premiums to address the financial strain from these insolvencies.
Landry also criticized what he described as insurers withholding important information under claims of confidentiality, a practice he wants to restrict through legislative action.
Temple responded by saying carriers are legally obligated to provide any information the Department of Insurance requests, regardless of whether it is marked as confidential.
He reiterated his position that reforms should focus on legal and medical cost drivers, which he identified as key contributors to high premiums.
“With this reform package, we are directly addressing the cost drivers within our legal system, such as medical billing transparency, comparative fault, and general damages,” Temple said. “These are measures that we know will make a significant difference and begin to lower costs for families and businesses.”
Temple has been calling for auto insurance reform since at least March, referencing the state’s recent efforts to stabilize the property insurance market by attracting new carriers and reducing rate filings.
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