April 4, 2023


LDI Unveils Comprehensive Market Reforms to Strengthen Housing Stock and Stabilize Market

Legislative agenda includes legal reforms and FORTIFIED roofs

Today, Insurance Commissioner Jim Donelon, Senate Insurance Committee Chair Kirk Talbot and House Insurance Committee Chair Mike Huval unveiled a suite of comprehensive reforms to Louisiana’s insurance market to stabilize rates for homeowners and build long-term sustainability. The legislative package, which includes legal reforms, strong incentive programs for homeowners and insurers, and a significant investment in FORTIFIED roofing, represents tested policies that directly respond to the insurance crisis. 

“This package, which is centered around legal reform and the Fortify Homes roof grant program, is the most ambitious property insurance reform we have attempted to achieve in my 17 years as Insurance Commissioner,” said Commissioner Donelon. “The first step in our recovery is well underway. You’ve seen the news: our state leaders pulled together in February to fund the Insure Louisiana Incentive Program, which has already received eight approved applications from insurers for $42 million in grants. That means more lower-cost insurance options for homeowners. I anticipate we will see 40,000 policies come out of Citizens, the high-cost insurance program of last resort, by the end of the program’s first year and 50,000 additional new policies written during that time.”

“Through the work of our committees and the LDI, the Insure Louisiana incentive program is attracting significant interest from insurers. This is a big win for homeowners across the state who will see more options and opportunities to exit Citizens,” said Senate Insurance Chairman Kirk Talbot. “We’re prepared to move forward with additional incentives to attract nearly $250 million of new written premium, meaning tens of thousands of rate reductions for Louisiana homeowners.”

The legislative package includes a full implementation of the Louisiana Fortify Homes Program, which helps homeowners receive direct incentives to build stronger roofs, which in turn will lower their insurance premiums. 

“Stronger roofs means fewer insured losses and lower rates. That’s why we are encouraging homeowners to build FORTIFIED by bringing bills that will require insurance companies to offer a discount and an endorsement to upgrade their policyholders’ roofs to the FORTIFIED roof standard of IBHS,” said House Insurance Chairman Mike Huval. “This program will help a lot of folks resist storm damage in the near future while potentially reducing residential property insurance costs for the entire state in the longer term.”

The LDI, in partnership with insurance leaders in the legislature and stakeholders throughout Louisiana, is proposing legal and claims process reform that will attract more insurers from across the country to Louisiana’s market and stabilize costs for homeowners. 

“We’ve seen rogue law firms file frivolous lawsuits against insurance companies, which drives up costs for honest homeowners and makes it harder for legitimate claims to be processed,” said Commissioner Donelon. “Louisianans know bogus lawsuits on top of more frequent and destructive disasters means insurance companies don’t want to do business here, and if they do, they’re charging an arm and a leg.” 

The LDI is also pushing to strengthen regulations on insurance company leadership by blocking former officers and directors of failed insurers from jumping to new companies. The Legislative session begins on April 10, 2023. 

The press conference can be viewed here.

About the Louisiana Department of Insurance: The Louisiana Department of Insurance works to improve competition in the state’s insurance market while assisting individuals and businesses with the information and resources they need to be informed consumers of insurance. As a regulator, the LDI enforces the laws that provide a fair and stable marketplace and makes certain that insurers comply with the laws in place to protect policyholders. You can contact the LDI by calling 1-800-259-5300 or visiting