Louisiana insurance incentive program receives $62M in funding requests

The state’s department of insurance reports that nine companies applied for more than $60 million in funding from the program.

Funding requests exceeded the $45 million that the state earmarked for the program during an extraordinary session on insurance held earlier this year. (Credit: Shutterstock.com)

The Insure Louisiana Incentive Program received applications from nine insurance companies, which collectively requested more than $62 million in grant money, according to the Louisiana Department of Insurance (LDI). The applicant’s funding requests surpassed the $45 million allocated for the program, and state lawmakers are working on a bill to increase the program’s funding.

The program, which is similar to a state initiative launched following hurricanes Katrina and Rita in 2005, offers matching grants to insurers to write new policies in Louisiana. The initiative aims to entice private insurers back into the state, while driving down the policy count for Louisiana Citizens Property Insurance Corp.

These are the companies currently requesting funds from the program:

The approved companies will soon start offering policies to Louisiana homeowners and businesspeople, according to Louisiana Insurance Commissioner Jim Donelon, who said in a release: “Along with several legislative proposals we will introduce to strengthen the market during regular session, these insurers will demonstrate to the wider industry that Louisiana is a viable destination to do business on a go-forward basis.”

This news comes on the heels of LDI announcing it would offer incentive program credits for insurers that take on policies from insolvent United Property & Casualty Insurance Co. The insurance department reported that credit will also be given to companies who write policies for former UPC policyholders during the 30-day period after cancellation.

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