The Louisiana House Committee on Civil Law and Procedure has advanced a set of automobile insurance-related bills that mark a step forward in the state’s ongoing insurance reform discussions.
This follows recent press briefings held separately by Gov. Jeff Landry and Insurance Commissioner Tim Temple (pictured right) ahead of the legislative session.
Caitlin Murray, regional vice president for the Southeast region of the National Association of Mutual Insurance Companies, said the industry is generally supporting efforts to tackle litigation-related concerns.
“Lawmakers should also focus on ways to attract more insurance capital into the state,” Murray said in a report from Best Wire.
While both Landry and Temple emphasized the need to address issues such as legal abuse and distracted driving, they diverged on some matters. Landry advocated for limiting the use of credit scores in underwriting, a position that has met resistance from insurers, who argue that it impairs risk-based pricing.
Of the six bills approved by the committee, two focused on tort reform have drawn the most attention, according to Mark Friedlander, senior director of media relations at the Insurance Information Institute.
House Bill 34 would revise how medical damages are presented in personal injury cases. Current law permits juries to see only the amount billed for services, but not any negotiated payments or actual amounts paid.
The proposed legislation would allow jurors to consider both figures, providing what supporters say is a more complete view of actual medical costs incurred.
Friedlander also pointed to House Bill 431, which would amend Louisiana’s comparative fault system. The bill proposes that if a plaintiff is found to be at least 51% responsible for their own injuries, they would no longer be eligible for compensation.
Under existing law, damages are reduced in proportion to the plaintiff’s share of fault, but awards are still possible unless the plaintiff is fully at fault.
Friedlander said both measures are aimed at addressing the volume of legal claims stemming from what he described as aggressive advertising by personal injury attorneys and the resulting rise in lawsuits.
The proposed changes come as Louisiana continues to report improvements in the state’s insurance landscape.
According to Temple, insurance reforms enacted by the Louisiana legislature in 2024 are contributing to market stabilization, with 10 new homeowners’ insurers entering the state and a decline in both costs and the frequency of rate filings.
Temple said that approved homeowners’ insurance rate increases in 2024 averaged 6.6%, compared with 14% in 2023 and 16.2% in 2022.
In commercial multiperil lines, average rate increases slowed to 3% in 2024 from 6.7% the previous year. Fire and allied line rate increases averaged 1.8% in 2024, down from 5.8% in 2023.
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