Instead of artificially forcing insurance rates down and putting the state and its taxpayers in the insurance business (as in Florida, see here), Louisiana is taking a different approach to solving the state's insurance challenges. The Governor is reaching out to insurance companies and other service entities such as AIR Worldwide and RMS (see here) in hopes of fostering competition and lowering insurance rates.
Effective risk management is critical in changing the exposure, which can then result in lower insurance costs. Risk management steps that have (they claim) been taken:
- adopting statewide building codes
- new flood elevation levels
- reforming levee boards
- dedicating offshore oil revenue to coastal restoration and hurricane protection
As Texas has shown, building codes work (see here on the impact of building codes).
Update The Governor is getting tougher, threatening the insurance industry with state competition (see here).
The Governor is getting tougher, threatening the insurance industry with state competition (see here).
Specialty Insurance Expertise: Tennant Risk Services
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