Louisiana currently requires insurers to get any rate changes reviewed and approved by the state’s insurance commissioner before they can go into effect. But a bill that advanced from the Senate Insurance Committee could soon change that.
The bill would allow insurance providers to raise rates without first getting approval from the state's insurance commissioner.
Instead, rate changes that companies file would be automatically approved. The commissioner, currently Tim Temple, would then have 30 days to review those changes and notify the insurer if something is wrong.
Temple supports the proposal. It’s part of a package of bills he’s in favor of that would deregulate the insurance market in Louisiana, a move he says will attract more providers to the state, increase competition and lower rates — though they will also leave ratepayers with far fewer protections.
The bill heads next to the full Senate for debate along with several other insurance bills. Similar proposals will also be considered in the House.
