Louisiana insurance coverage commissioner Jim Donelon not too long ago held a press convention to handle the cancellation of about 29,000 insurance policies by the insurance coverage firm Lighthouse Excalibur.
Years of extreme storms have led to costly insurance coverage claims within the state, overwhelming insurance coverage firms to the purpose of forcing a number of of them – comparable to Lighthouse Excalibur – to bail.
On the Press convention, Donelon mentioned that Lighthouse Excalibur had $316 million to pay for claims previous to Hurricane Ida; it had projected that Ida would price $200 million. Nevertheless, Donelon famous that 16,000 claims had been filed following the hurricane, and that the storm finally price Lighthouse Excalibur an excellent larger $440 million.
“Proper now, we are attempting to cease the movement of firms exiting our state and a few simply pausing their writings,” mentioned Donelon. “Our focus is getting protection within the non-public sector for these people whose firms have stopped writing or have gone into receivership.”
As reported by native information outlet WDSU Information, Donelon additionally introduced that two extra insurance coverage firms are withdrawing from the state: Southern Constancy and Maison. The cancellation of Maison would have an effect on some 13,000 policyholders after June 30, whereas Southern Constancy would have an effect on one other 42,000.
Learn extra: One other Florida insurer teeters on the point of insolvency
Southern Constancy isn’t just on the ropes in Louisiana, however in Florida as properly. The corporate was ordered by the Florida Workplace of Insurance coverage Regulation to arrange to wind down its enterprise within the state, as rankings agency Demotech withdrew its Monetary Stability Score for the insurer.