Louisiana Citizens Property Insurance Corp. will terminate a 1.36% assessment on property policyholders in April, over a year earlier than its initial end date of June 2026. The decision was approved by the insurer’s board of directors.
The assessment was originally implemented to repay bonds issued to cover debt incurred by Louisiana Citizens Property Insurance Corp. following hurricanes Katrina and Rita, AM Best reported, citing the Louisiana Department of Insurance (LDI).
Insurance Commissioner Tim Temple, who also serves as chairman of Citizens’ board, acknowledged the limited financial impact of ending the assessment but emphasized its significance within the broader context of improving affordability.
“While the savings policyholders will see as a result of this change are not that significant when compared to the high premiums we all pay for property insurance, every little bit helps as we work to create a more available and affordable market in Louisiana,” Temple stated.
In addition to ending the assessment, Louisiana Citizens policyholders will benefit from a waiver of the 10% Citizens surcharge on policy enrollments or renewals. This waiver, effective January 1, will remain in place for three years, according to the LDI.
The surcharge, introduced to ensure Louisiana Citizens' policies remained noncompetitive with the private market, was adjusted as part of property insurance reforms enacted in summer 2024. The waiver aims to provide temporary relief to policyholders while other legislative measures take effect, according to John Ford, LDI’s deputy commissioner of public affairs.
Mark Friedlander, director of corporate communications at the Insurance Information Institute, expressed cautious optimism about the developments, crediting legislative reforms for stabilizing the state’s insurance market.
“We hope additional reforms addressing legal system abuse will further improve market conditions and enable private insurers to profitably write business in the state,” Friedlander said in a statement.
In 2023, the largest writers of homeowners insurance in Louisiana, based on direct premiums written, were: State Farm Group, with a 21.94% market share; Allstate Insurance Group, 13.88%; USAA Group, 7.6%; Liberty Mutual Insurance Companies, 7.11%; and Slaine Insurance Group, 5.39%, according to data from BestLink.
