Louisiana insurance commissioner Jim Donelon recently held a press conference to address the cancellation of about 29,000 policies by the insurance company Lighthouse Excalibur.
Years of severe storms have led to expensive insurance claims in the state, overwhelming insurance companies to the point of forcing several of them – such as Lighthouse Excalibur – to bail.
At the Press conference, Donelon said that Lighthouse Excalibur had $316 million to pay for claims prior to Hurricane Ida; it had projected that Ida would cost $200 million. However, Donelon noted that 16,000 claims were filed following the hurricane, and that the storm ultimately cost Lighthouse Excalibur an even bigger $440 million.
“Right now, we are trying to stop the flow of companies exiting our state and some just pausing their writings,” said Donelon. “Our focus is getting coverage in the private sector for those folks whose companies have stopped writing or have gone into receivership.”
As reported by local news outlet WDSU News, Donelon also announced that two more insurance companies are withdrawing from the state: Southern Fidelity and Maison. The cancellation of Maison would affect some 13,000 policyholders after June 30, while Southern Fidelity would affect another 42,000.
Southern Fidelity is not just on the ropes in Louisiana, but in Florida as well. The company was ordered by the Florida Office of Insurance Regulation to prepare to wind down its business in the state, as ratings firm Demotech withdrew its Financial Stability Rating for the insurer.