Insurance Department: Competition Increases in Louisiana Homeowners Market
The Louisiana Department of Insurance says the state’s homeowners insurance market is much more competitive these days than it was a decade ago.
The LDI reported in its 2018 Agency Snapshot that in 2017, the homeowners market saw the lowest average statewide increases in a decade. The market impact of all homeowners insurance rate changes statewide was +1.6 percent in 2017, the Snapshot shows.
With 28 companies writing homeowners insurance in Louisiana that were not participating in the state’s market in 2005, homeowners with more choices. The continued shrinking of the market share of Louisiana Citizens Property Insurance Corporation, the state’s property insurer of last resort is also a sign that the homeowners market is more competitive than in the past.
The top three homeowners multi-peril insurers in Louisiana are State Farm Fire and Casualty Co. with $487,955,101 in direct written premium and 26.34 percent market share, Allstate Insurance Co. with 100,506,499 in direct written premium and a market share of 5.43 percent, and Louisiana Farm Bureau Mutual Insurance Co. with $93,000,260 in direct written premium and a market share of 5.02 percent.
The Louisiana insurance industry is now a $33 billion business, according to the LDI. In terms of overall insurance premium volume, Louisiana is ranked 41st worldwide and 21st in the United States. California ranks second worldwide in premium volume and first in the U.S.