Louisiana’s property and casualty (P&C) insurance market will see its first major rate cut in a decade in 2025, according to a new Triple-I report.
However, the Triple-I CEO said significant headwinds remain and legal system abuse continues to be deeply embedded in the state’s claims environment, meaning continued legislative action is critical to making insurance reliably affordable for Louisiana families and businesses.
Triple-I’s new members-only issue brief found that property insurance premium rates will decline an average of 0.4% across all lines statewide in 2025, reversing a pattern of consistent increases from 2021 to 2024.
“The improvement was most significant for private passenger vehicles, with premiums falling by an average of 5.8 percent and a decrease of more than $340 million statewide,” Triple-I said.
The report said the broad improvement reflected a decline in the frequency of accidents and the early benefits of legislative reforms aimed at curbing abuse of the legal system.
These recently enacted measures, often referred to as tort reform, have reshaped the state’s litigation landscape by imposing tighter restrictions on attorney advertising, controlling third-party litigation funding, and lowering the bar for jury trials.
Meanwhile, homeowners insurance rates continue to rise, but at a significantly slower pace.
Triple-I said premium growth will slow to 4.6% in 2025 from 10.4% in 2023. Homeowner insurance companies proposed nine rate reductions in 2025, the highest number since 2020, while 17 new insurance companies have entered the state’s homeowners market since 2024, increasing competition.
However, despite the positive trends, Triple-I said there are still significant headwinds.
“Louisiana continues to litigate personal auto claims at more than twice the U.S. average, and personal injury claims at nearly twice the national norm. Abuse of the legal system, including abusive allocations of benefits, rampant claims fraud and third-party litigation funding (TPLF), continue to drive up costs for policyholders, the report said.”
Triple-I CEO Sean Kevelighan commented: “The data shows the legislative reforms are working. But Louisiana’s work is far from done.”
“Abuse of the legal system remains deeply embedded in the state’s claims environment, and continued legislative action is critical to making insurance reliably affordable for Louisiana families and businesses.
“Resilient homes mean fewer claims, lower losses and ultimately lower premiums. Projects like Fortify Homes in Louisiana show how strategic investments in mitigation can attract more insurance companies to the market and expand coverage. This is a model that other states should take a closer look at.”
“I am not satisfied with the current rates and hope the reforms we have made in recent years will lower costs for all insurance companies,” said Louisiana Insurance Commissioner Tim Temple.
“My top priority in 2026 is to continue improving the insurance market by protecting consumers and increasing affordability and long-term availability across the state.”
