NU Online News Service, Nov. 23, 3:47 p.m. EST
The most recent round of policy assumptions from Louisiana's last-resort insurer could mean the state-run entity has slipped to the fifth or sixth largest homeowners insurer in the state.
According to the Louisiana Department of Insurance (LDI), a fourth round of policies was removed from Citizens in an effort to reduce its exposure and ultimately reduce the chance for assessments on the private market in the event of a catastrophe.
In 2009, Citizens had about 6.4 percent of the homeowners insurance market share in Louisiana. The last resort insurer saw a big increase in policies following hurricanes Katrina and Rita in 2005, peaking at about 174,000. With the latest round of take-outs, Citizens will now have about 119,000 policies.
"The reduction in market share of Citizens is a great indicator that the homeowners insurance market, as well as the commercial property insurance market, in Louisiana is rebounding from the severe hit we suffered as a result of hurricanes Katrina and Rita," said Insurance Commissioner Jim Donelon in a statement.
He said policies written in the private market tend to be written at lower premiums since Citizens is required by law to have the highest rates in order to prevent competition with the private market.
According to Highline Data the top writers of homeowners multiperil in Louisiana in 2009, based on direct written premiums, were State Farm, Allstate, Louisiana Citizens, Liberty Mutual and Louisiana Farm Bureau. State Farm and Allstate have about 42 percent of the market.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
