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 count on “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 adjustments to property insurance coverage legal guidelines however mentioned congressional redistricting points took priority at Louisiana’s legislature this month.

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

“We’re centered on making a roadmap of options by partaking with insurance coverage firms, client advocacy teams, state lawmakers, brokers, and policyholders to establish the elemental issues and lay out regulatory adjustments that have to be made,” mentioned Temple.

“Due to the timing and lack of ability 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 concentrated on making the state a sexy marketplace for insurers, engaging extra rivals to usher in extra choices and, hopefully, affordability for customers.

Chatting with Insurance coverage Enterprise, he mentioned he has “hit the bottom operating” a little bit over every week since his inauguration.

“Everyone that I converse to on this trade that is been in it for any variety of years – and I am speaking to some of us which were at it for 40, 50 years – all agree that is the worst insurance coverage setting that they’ve ever skilled,” Temple mentioned.

“What that interprets to on the client degree is unavailability, and even when insurance coverage is offered, 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 attributable to inflation have pushed up insurance coverage costs for customers.

“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 mentioned.

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

Modifications are forward for the Louisiana Department of Insurance (LDI). Temple mentioned his coverage priorities diverge from these of his predecessor, Donelon, in just a few 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 put in writing extra insurance policies within the state. Temple mentioned he wouldn’t be asking for extra funding for this system shifting ahead.

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

“The present programme is designed in order that we’ve got to go earlier than the legislature yearly to ask for funding,” Temple mentioned.

“I’m taking a look at a few alternative ways to create a gentle funding supply so the trade 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 evaluate for insurance coverage firms concerning their monetary solvency and reinsurance applications. The commissioner mentioned that new entrants who wish to write in extremely uncovered areas should exhibit that they’ve “greater than ample” reinsurance in place ought to catastrophic occasions happen.

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

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

“Usually, if you hear individuals speaking about adjustments to the regulatory setting that could be in favour of the trade, they suppose that it is binary, which implies if it is good for the trade, then it have to be dangerous for the buyer, or if one thing is sweet for the buyer, then it have to be dangerous for the trade,” he mentioned. “I do not imagine in that. I feel there’s a steadiness.”

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 trade, serving as president of Temptan, a family-owned funding administration enterprise in Baton Rouge.

He received 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 mentioned.

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

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

“I wish to hear from the trade to make this state one the place firms can thrive however on the similar time, ship a product that customers can afford,” he mentioned.

“I wish to have these conversations; I wish to take note of the issues which can be necessary to the trade, to make it extra enticing whereas, on the similar time, defending the buyer from the dangerous actors on the market.”

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