Louisiana insurance coverage commissioner Jim Donelon just lately held a press convention to deal with 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 corporations to the purpose of forcing a number of of them – comparable to Lighthouse Excalibur – to bail.
At 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. However, Donelon famous that 16,000 claims have been filed following the hurricane, and that the storm finally price Lighthouse Excalibur a good larger $440 million.
“Right now, we are attempting to cease the movement of corporations exiting our state and a few simply pausing their writings,” mentioned Donelon. “Our focus is getting protection within the personal sector for these people whose corporations have stopped writing or have gone into receivership.”
As reported by native information outlet WDSU News, Donelon additionally introduced that two extra insurance coverage corporations are withdrawing from the state: Southern Fidelity and Maison. The cancellation of Maison would have an effect on some 13,000 policyholders after June 30, whereas Southern Fidelity would have an effect on one other 42,000.
Read extra: Another Florida insurer teeters on the point of insolvency
Southern Fidelity isn’t just on the ropes in Louisiana, however in Florida as nicely. The firm was ordered by the Florida Office of Insurance Regulation to organize to wind down its enterprise within the state, as rankings agency Demotech withdrew its Financial Stability Rating for the insurer.