La. House Approves Gov.’s $100M Insurance Plan

The Louisiana House of Representatives on approved Gov. Kathleen Blanco’s proposals to improve Louisiana’s dismal property insurance market, including using $100 million as financial incentives for insurance companies.

House members voted 100-1 to pass the $100 million in incentives, which Blanco wants to offer to insurers that agree to come to Louisiana and write policies along the Gulf coast, where insurance has become scarce since the industry paid billions in claims after the 2005 hurricanes.

Blanco has said the money – to be given to insurers as grants of up to $10 million – will make Louisiana a more attractive market, lure insurers to the state and lower rates by increasing competition.