Louisiana’s new Insurance coverage Commissioner Tim Temple plans to fast-track reforms

Louisiana’s new Insurance coverage Commissioner Tim Temple plans to fast-track proposed reforms to sort out the state’s insurance coverage disaster and has instructed insurance coverage firms and policyholders to anticipate “vital variations” as he takes up the mantle from Jim Donelon.

Temple (pictured), who was sworn into workplace on January 8, has referred to as for a particular session in early 2024 to push modifications to property insurance coverage legal guidelines however stated congressional redistricting points took priority at Louisiana’s legislature this month.

Proposals shall be heard within the common session, which begins March 11.

“We’re targeted on making a roadmap of options by partaking with insurance coverage firms, client advocacy teams, state lawmakers, brokers, and policyholders to determine the basic issues and lay out regulatory modifications that must be made,” stated Temple.

“Due to the timing and incapacity to push for a particular session, we’ll ask the legislature to fast-track these options that we give you, with the intent of getting them to the governor’s desk as quickly as potential.”

‘Roadmap of options’ to alleviate Lousiana’s insurance coverage woes

Temple is targeted on making the state a sexy marketplace for insurers, attractive extra rivals to herald extra choices and, hopefully, affordability for shoppers.

Chatting with Insurance coverage Enterprise, he stated he has “hit the bottom working” slightly over per week since his inauguration.

“All people that I communicate to on this business that is been in it for any variety of years – and I am speaking to some people which have been at it for 40, 50 years – all agree that is the worst insurance coverage surroundings that they’ve ever skilled,” Temple stated.

“What that interprets to on the client degree is unavailability, and even when insurance coverage is out there, it’s actually approaching or exceeding the affordability threshold for a lot of people, households, and companies.”

Steep losses from hurricane seasons in 2020 and 2021 have contributed to a mass exit of insurers in Louisiana. Much less competitors and rising prices on account of inflation have pushed up insurance coverage costs for shoppers.

“My precedence is to make Louisiana extra fascinating for insurance coverage firms by creating a sexy market they wish to come and do enterprise in,” Temple stated.

What can Louisiana anticipate from its new Insurance coverage Commissioner Tim Temple?

Adjustments are forward for the Louisiana Division of Insurance coverage (LDI). Temple stated his coverage priorities diverge from these of his predecessor, Donelon, in a number of methods.

One is that Temple opposes the insurer incentive program that got here out of final 12 months’s particular session. This system supplied insurance coverage firms taxpayer funds to jot down extra insurance policies within the state. Temple stated he wouldn’t be asking for extra funding for this system shifting ahead.

Temple does assist the Fortify Properties program, which grants as much as $10,000 for owners to improve their roofs to requirements set by the Insurance coverage Institute for Enterprise & House Security. He stated the LDI is wanting into completely different funding mechanisms to make this system extra everlasting.

“The present programme is designed in order that now we have to go earlier than the legislature yearly to ask for funding,” Temple stated.

“I’m taking a look at a few other ways to create a gradual funding supply so the business sees that this can be a long-term programme and will not be topic to budgetary restraints that happen from 12 months to 12 months.”

One other precedence for Temple is elevating the usual of overview for insurance coverage firms concerning their monetary solvency and reinsurance applications. The commissioner stated that new entrants who wish to write in extremely uncovered areas should reveal that they’ve “greater than sufficient” reinsurance in place ought to catastrophic occasions happen.

“I actually wish to work with the business to create that aggressive market, however I additionally wish to maintain them accountable,” Temple stated. “Policyholders and insurance coverage firms can anticipate vital variations shifting ahead.”

Temple additionally addressed the false binary that usually comes with regulatory reforms.

“Typically, once you hear individuals speaking about modifications to the regulatory surroundings that is perhaps in favour of the business, they suppose that it is binary, which suggests if it is good for the business, then it have to be unhealthy for the buyer, or if one thing is sweet for the buyer, then it have to be unhealthy for the business,” he stated. “I do not consider in that. I believe there’s a stability.”

Louisiana Insurance coverage Commissioner Tim Temple on a ‘collaborative method’ to regulation

A local of DeRidder, Temple has labored for over twenty years within the insurance coverage business, serving as president of Temptan, a family-owned funding administration enterprise in Baton Rouge.

He gained the election for the state’s prime insurance coverage official in October after his opponent dropped out of the first. Temple replaces Jim Donelon, who served as Insurance coverage Commissioner for 17 years.

Temple instructed Insurance coverage Enterprise that the seed of his intent to run for commissioner was planted in 2017 when Donelan introduced he wouldn’t search a fifth time period.

“I’m at an age and stage of my life the place I felt I had the time, power, and expertise to do some public service, and insurance coverage has been my life; it has been my background,” Temple stated.

“We’ve by no means had an Insurance coverage Commissioner with related expertise within the insurance coverage business. So, I hope to deliver my understanding of the complexities of insurance coverage to this workplace as a result of I believe we are able to positively affect the lives of each particular person, household, and enterprise in our state.”

As he equipped for the laborious work and discussions over the following few months, Temple emphasised he would take a “collaborative, engaged” method with stakeholders.

“I wish to hear from the business to make this state one the place firms can thrive however on the identical time, ship a product that buyers can afford,” he stated.

“I wish to have these conversations; I wish to take note of the issues which can be essential to the business, to make it extra engaging whereas, on the identical time, defending the buyer from the unhealthy actors on the market.”

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