Louisiana Governor Signs Six Insurance Reform Bills Targeting Auto, Property Rates

Louisiana Governor Jeff Landry recently signed six bills aimed at lowering car and property insurance rates by implementing significant tort reforms, including modified comparative fault rules and restrictions on damages for undocumented immigrants, though the state's Insurance Commissioner Tim Temple opposed a controversial bill granting the commissioner power to reject rate hikes, fearing reduced competition. Commissioner Temple highlighted Louisiana's unusually high frequency and litigation rates for bodily injury claims as a primary factor driving up premiums and supported measures to deter legal system abuses. Meanwhile, states across the U.S. are independently advancing insurance reforms, particularly to streamline prior authorization processes for medical treatments amid federal legislative inaction, with several states also proposing limits on insurers' use of AI in claims decisions. In Florida, recent legislative efforts have reversed measures that deterred policyholders from pursuing legitimate first-party insurance claims by reinstating attorney fee awards for prevailing parties, aiming to balance the reduction of frivolous lawsuits with fair access to legal recourse for insured individuals. These state-level initiatives reflect growing regional responses to insurance market challenges, including cost control, consumer protection, and litigation management, amid varying perspectives from regulators, insurers, and legal entities.