Following Hurricanes Helene and Milton, Louisiana’s insurance market remains stable, with officials maintaining a cautiously optimistic outlook.
In a report, Louisiana Insurance Commissioner Tim Temple (pictured right) has described the situation as “manageable,” noting that the storms' impact is less severe than previous catastrophic events, such as Hurricane Ian in 2022.
Temple pointed out that the losses from Helene and Milton are projected to be significantly lower than Ian’s, which resulted in a $65 billion loss. He noted that current estimates suggest losses from the two hurricanes will be less than half that amount.
Although Louisiana has largely avoided significant damage this season, Temple highlighted the global nature of the reinsurance market, which means events around the world could still affect local insurance rates.
"Globally it looks like catastrophic losses are coming in lower than forecast, but again we’re not out of this year yet," he said.
The state has only experienced one major storm this year, and Temple remained hopeful that the rest of the season would pass without further significant disruptions.
However, he emphasized that the reinsurance market, which has a direct impact on rates in Louisiana, could still change depending on the outcome of the remaining hurricane season.
“It looks like we’re trending in the right direction so that reinsurance isn’t going to be a major factor, but we got to hold out and see what the next two months bring,” Temple said.
A recent report from Bloomberg Intelligence noted that reinsurers' concerns over potential pressure to reduce pricing and offer more favorable terms have diminished following a series of late summer storms that increased natural catastrophe losses.
Losses from Hurricanes Milton and Helene are likely to prevent the industry from seeing a repeat of 2023, when returns were buoyed by a lack of significant North Atlantic hurricane claims.
Meanwhile, retention rates will keep primary insurers responsible for a larger portion of claims stemming from secondary perils, such as floods and wildfires, as demand grows for a coordinated government response to climate change.
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