The Louisiana legislative session kicked off this week in Baton Rouge, focusing on the state’s pressing insurance affordability crisis. Governor Jeff Landry and Insurance Commissioner Tim Temple have made insurance reform a top priority, as lawmakers gather to discuss potential solutions. The session began on April 14 and will continue until June 12.
In his opening address, Governor Landry highlighted the widespread impact of insurance issues, stating that they affect every corner of the Capitol. He pointed fingers at both insurance companies and plaintiff lawyers for the high insurance rates in Louisiana, which are among the highest in the nation. "Year after year, we are promised by insurance companies that if we pass this or that, they will lower rates. It never happens," Landry remarked, expressing frustration over repeated unfulfilled promises.
While Landry takes a balanced view, suggesting that both sides contribute to the problem, Temple believes that significant tort reform is necessary to eliminate bad practices and encourage more insurance companies to operate in the state. "We have the most visibility on this issue than ever before," Temple stated, emphasizing the importance of public awareness in pushing for real reform.
Temple is sponsoring 20 reform bills this session aimed at addressing various aspects of the insurance landscape. These include changes to Louisiana’s comparative fault rule, stricter regulations on third-party litigation financing, limits on attorney fees, and new requirements for pre-suit notices. Temple noted that these proposals are the result of extensive discussions with industry leaders and consumer advocates.
Both Landry and Temple agree on some legislation, such as limiting advertisements from plaintiff attorneys and enhancing medical transparency related to insurance claims. They also support measures to restrict recovery for uninsured drivers and to prohibit texting or social media use while driving. Additionally, Landry backs a proposal that would empower the insurance commissioner to reject excessive rate increases.
As the session unfolds, both leaders are hopeful that the increased attention on insurance issues will lead to meaningful reforms that ultimately lower costs for Louisiana residents.