Department of Insurance Says It Recovered $22M for Consumers in 2020
BATON ROUGE – Insurance Commissioner Jim Donelon said that the Louisiana Department of Insurance Office of Consumer Services recovered more than $22 million for consumers from insurance companies through complaint resolution in 2020. All payouts are in excess of what insurers originally offered consumers for their claims.
“The 2020 hurricane season caused massive devastation to many homes and businesses in Louisiana, particularly in the southwestern part of our state,” said Donelon. “More than 75 percent of our recoveries came in the last quarter of the year, as we assisted consumers with their residential and commercial policies after hurricanes Laura, Delta and Zeta hit our coast. Making sure that policyholders receive the money they are entitled to is an important part of our mission at the Louisiana Department of Insurance.”
The $22 million savings comes from formal complaints regarding life and annuities, property and casualty, and health products. When resolving a complaint leads to increases in the settlement value from an insurance company to their policyholder, the department considers the increase recovered funds.
The largest share of recoveries last year were from complaints about property and casualty products. Complaints on property and casualty products led to $19,424,911 of funds recovered for consumers. These complaints are largely attributed to claims issues after a record-breaking hurricane season that saw three hurricanes make landfall on the Louisiana coast. The three storms combined caused more than $7.7 billion in paid claims or reserves by insurance companies in Louisiana at the end of the year.
In 2020, recoveries from health products accounted for $822,989 of the total. Life and annuity product complaints accounted for an additional $1,772,705.
Consumers with questions or complaints may contact the Office of Consumer Services by calling (800) 259-5300.