BATON ROUGE, La. (BRPROUD) – Officials gave updates about the Insure Louisiana Incentive Program Tuesday morning.
Insurance Commissioner Jim Donelon said $45 million in funding for the Insure Louisiana Incentive Program was passed during last month’s special session. He confirmed that the application period for the first round of the incentive program closed on Friday, March 10.
“For each dollar that an insurance company receives through that program they must match that grant dollar for dollar and then write four times four dollars in new premium,” said Donelon.
The round-one application period was a success, according to Donelon.
“The insurers collectively asked for a total of $62 million in grant money,” said Donelon.
A list of the insurance companies that have applied for grant funding:
- Safe Point Insurance Company requested $10 million
- Constitution Insurance Company requested $10 million
- Applied Underwriters requested $10 million
- Sure Choice Underwriters Reciprocal Exchange requested $10 million
- Cajun Underwriters Reciprocal Exchange requested $5 million
- Elevate Reciprocal Exchange requested $5 million
- Allied Trust Insurance Company requested $6.5 million
- Gulf States Insurance Company requested $3.6 million
- Safe Port Insurance Company requested $2 million
The hope is that with these new companies, it will increase competition and drive rates down. Rep. Mike Huval said this is a great step but not a permanent solution.
“We will be working together on several new bills this session aimed at strengthening our insurance market for the long term,” said Huval.
These nine companies are still facing a vetting process before they can be recommended for approval by the legislative committee on the budget.
“If all goes well, they should be able to begin writing new policies as soon as next month,” said Donelon.
Donelon announced he will not seek re-election.
Watch the full news conference below: