Louisiana’s insurance market remains stable despite Hurricanes Helen and Milton | Insurance Business American Reinsurance Louisiana’s insurance market remains stable despite Hurricanes Helen and Milton
State insurance commissioner warns reinsurance could impact future premiums
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Written by Kenneth Arauro
Louisiana’s insurance market remains stable after Hurricanes Helen and Milton, and officials remain cautiously optimistic.
Louisiana Insurance Commissioner Tim Temple (pictured right) said in a report that the storm’s impact was less severe than past catastrophic events such as Hurricane Ian in 2022, saying the situation was “under control.” “It is possible,” he said.
Temple noted that Helen and Milton’s losses are expected to be significantly less than Ian’s (resulting in $65 billion). He noted that current estimates suggest losses from the two hurricanes would be less than half that amount.
Although Louisiana largely avoided major losses this season, Temple emphasized the global nature of the reinsurance market, meaning events around the world can still impact local premium rates. He emphasized that he meant it.
“Although catastrophic losses globally appear to be lower than expected, the year is still not over,” 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 any further disruption.
However, he emphasized that the reinsurance market, which directly impacts Louisiana rates, is still subject to change depending on the outcome of the remaining hurricane season.
“Reinsurance is not going to be a big factor because we seem to be moving in the right direction, but we have to hold on and see what the next two months bring,” Temple said.
A recent report from Bloomberg Intelligence cited reinsurers’ concerns about potential pressure to lower prices and offer more favorable terms after a series of late-summer storms increased natural catastrophe losses. He pointed out that it was fading.
Losses from Hurricanes Milton and Helen will likely prevent the industry from repeating it in 2023, when profits were higher due to less damaging North Atlantic hurricanes.
Meanwhile, rising retention rates mean primary insurers will continue to shoulder the majority of claims resulting from secondary perils such as floods and wildfires, as demand for a coordinated government response to climate change increases. It will be.
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