Economic Development Group Pitching Louisiana to Auto Insurers

Millennial Driver
Getty Images

BATON ROUGE – On the heels of the welcome news that Farmers’ Insurance Exchange will once again write auto insurance policies in Louisiana, the Louisiana Association of Business and Industry and its Legal Reform Coalition partners sent a second round of letters to more than 1,100 auto insurers around the nation, asking them to reconsider doing business here. This follow-up correspondence was sent to the same companies who initially received a letter from LABI and the coalition last August, after the passage of the Civil Justice Reform Act of 2020.

“Just this week, Farmers’ Insurance Exchange announced a return to our state after a seven-year hiatus, and many more insurers are taking a fresh look at Louisiana in the wake of substantial legal reforms,” the letter states. “Our Legal Reform Coalition has spent the last two and half years working to bring these meaningful changes to improve our business and legal climates. With many of those reforms being implemented, we encourage you to reevaluate, reconsider and rethink doing business here.”

The letter also reiterates the landmark legislative changes of 2020, set to be fully enacted when the Louisiana Supreme Court lifts the temporary statewide jury trial moratorium put in place because of COVID-19 public health guidelines. The message also touches on the ongoing efforts in the judiciary to embrace reform, transparency and accountability.

“We’re excited by the news of Farmers Insurance returning to Louisiana,” said LABI President and CEO Stephen Waguespack. “As we’ve said from the beginning, bringing more competition to our marketplace will lead to lower auto insurance rates for our drivers. We’re confident this week’s announcement will be the first of many to come. LABI and our coalition partners look forward to working with Insurance Commissioner Jim Donelon and his team to help recruit even more insurers to Louisiana.”

In addition to LABI, the letter was signed by the state chapter of the National Federation of Independent Business, Associated Builders and Contractors of Louisiana, the Pelican Institute for Public Policy, the Independent Insurance Agents & Brokers of Louisiana, the American Sugar Cane League, the Louisiana Mid-Continent Oil and Gas Association, the Louisiana Home Builders Association, the Louisiana Oil & Gas Association and the Louisiana Motor Transport Association.

To read a copy of the full letter, click here.

Categories: Insurance, Politics, Today’s Business News