By Lyle Adriano
In spite of the “insurance catastrophe” left in the wake of the hurricanes Katrina and Rita 10 years ago, Louisiana emerged even stronger than it was before the storms hit, according to Jim Donelon, Louisiana Insurance Commissioner.
In an editorial board meeting with the (Lake Charles, LA) American Press on October 8, Donelon revealed that $25.3 billion in recompense was paid out to property owners following Hurricane Katrina, with another $3.3 billion in reimbursements after Rita.
While the storms devastated the insurance market, Louisiana endured and recovered, becoming “. . . stronger, viable and more competitive today than [the state was] the day before Katrina hit. [Louisiana’s] recovery has been truly remarkable,” said Donelon.
Donelon said state law mandates that a public property insurance policy be written for homeowners who do not or cannot secure coverage from private carriers. According to Donelon, there were about 105,000 policies when Katrina hit. During Hurricane Gustav in 2008, the number rose to 173,000. Currently, the number is at 88,000 policies.
Donelon said Louisiana did the best job of “filling the vacuum left by the exiting major national carriers.” He additionally noted that the state has 22 all-new small regional carriers to make the insurance claims process easier for all while taking up the slack left behind by exiting major carriers.
