Another 10,000 Louisianans could soon lose insurance

Another 10,000 Louisianans could soon lose insurance

Florida’s state regulator has begun default proceedings against Weston Insurance, meaning they could be headed for insolvency. The company has 10,300 policyholders in Louisiana, with even more leaving the state looking for new insurance. It’s unclear exactly when the policies will expire because the judge hasn’t made that decision, but after that date, Louisiana residents will have 60 days to find a new provider as long as they are covered by the state through Louisiana Citizens Insurance. “From what we’ve been told, the funding is there, they have the money to pay, but we need carriers to come back. Now, what that will look like and what those costs will look like, who knows, but certainly as little as possible as we can put in one place is a better solution,” Thibodeau-based insurance agent Price Bourgeois said. Citizens has already been bombarded with new policyholders since multiple other insurance companies stopped serving the state, including Lighthouse and Southern Fidelity in July. The state says Citizen’s enrollment has grown from 36,211 in August 2021 to 96. 318 in August 2022. “I have every confidence that they can pay it off. There is no risk to Citizen policyholders. Whatever it takes to get the claims paid, the board has the authority and the obligation to have access to every policyholder to make those payments,” state Insurance Commissioner Jim Donnellon said. For Bourgeois, however, he says he wants more insurers to enter the market because prices are going to go up. “You’re going to see rate increases in every type of insurance in the state, but if you have a good reputable company and you see a 10 percent increase or even 20 percent, I’m probably not going to move. Just because of that who are you going to move to if they are offering brutal rates right now is not the time to be cheapening your insurance,” Bourgeois said.

Florida’s state regulator has begun default proceedings against Weston Insurance, meaning they could be headed for insolvency. The company has 10,300 Louisiana policyholders, and even more are leaving the state looking for new insurance.

It’s unclear exactly when the policies will expire because the judge hasn’t made that decision, but after that date, Louisiana residents will have 60 days to find a new provider while covered by the state through Louisiana Citizens Insurance.

“From what we’ve been told, the funding is there, they have the money to pay, but we need carriers to come back. Now, what that will look like and what those costs will look like, who knows, but certainly as little as possible as we can put in one place is a better solution,” said Thibodaux-based insurance agent Price Bourgeois.

Citizens has already been bombarded with new policyholders since multiple other insurance companies stopped serving the state, including Lighthouse and Southern Fidelity in July. The state says Citizen’s enrollment rose from 36,211 in August 2021 to 96,318 in August 2022.

“I have every confidence that they can pay it off. There is no risk to Citizen policyholders. Whatever it takes to get claims paid, the board has the authority and the duty to have access to every policyholder to make those payments,” state Insurance Commissioner Jim Donnellon said.

But for Bourgeois, he says he wants more insurers to enter the market because prices will go up.

“You’re going to see rate increases in every type of insurance in the state, but if you’re with a good, reputable company and you see a 10 percent increase or even 20 percent, I probably won’t move.” Just because of who you’re going to move to, if they’re offering brutal rates right now, it’s not the time to be cheapening your insurance,” Bourgeois said.

Leave a Comment

Your email address will not be published.