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Wednesday, July 17, 2019

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Louisiana state-run property insurer shedding more policies

Louisiana state-run property insurer shedding more policies

BATON ROUGE, La. (AP) — Louisiana's state-run property insurance company of last resort is planning to shed another 10,000 policies.

Insurance Commissioner Jim Donelon announced Thursday that five insurance companies have agreed to take over 10,072 residential coverage policies from the Louisiana Citizens Property Insurance Corporation.

The state-backed insurer has been steadily reducing the policies it holds after hurricanes Katrina and Rita caused an influx of customers who couldn't get coverage from private insurers.

With the latest transfer of policies, the insurance department says Citizens will have about 40,800 policies. That's down from 174,000 in 2008, when, Donelon says, Citizens was the third-largest insurer in Louisiana.

Donelon's office says Citizens now will have 0.5 percent of the Louisiana homeowners' insurance market, compared to 9.8 percent in 2008.