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 deal with the state’s insurance coverage disaster and has advised 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 shall be heard within the common session, which begins March 11.

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

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

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

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

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

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

“What that interprets to on the shopper stage is unavailability, and even when insurance coverage is accessible, it’s definitely 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 as a result 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 lovely market they need to come and do enterprise in,” Temple mentioned.

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

Adjustments are forward for the Louisiana Division of Insurance coverage (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 yr’s particular session. This system provided insurance coverage firms taxpayer funds to jot down 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 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 mentioned the LDI is wanting into totally 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 mentioned.

“I’m taking a look at a few alternative ways to create a gentle funding supply so the business sees that it is a long-term programme and will not be topic to budgetary restraints that happen from yr to yr.”

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

“I definitely need to work with the business to create that aggressive market, however I additionally need 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.

“Typically, whenever you hear individuals speaking about adjustments to the regulatory atmosphere that could be in favour of the business, they assume that it is binary, which suggests if it is good for the business, then it have to be dangerous for the buyer, or if one thing is nice for the buyer, then it have to be dangerous for the business,” 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 20 years within the insurance coverage business, 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 advised 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 business. 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 influence the lives of each particular person, household, and enterprise in our state.”

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

“I need to hear from the business 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 need to have these conversations; I need to take note of the issues which are essential to the business, to make it extra engaging whereas, on the similar time, defending the buyer from the dangerous actors on the market.”

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