HAMILTON, Bermuda, Aug. 25, 2015 /PRNewswire/ -- In commemoration of the 10-year anniversary of Hurricane Katrina later this week, the Louisiana Department of Insurance and Insurance Commissioner James Donelon issued a report, "State of Insurance, 10 Years Post-Katrina," showcasing improvements made to the Louisiana home insurance market over the last decade. The report highlights the creation of a statewide building code, attraction of 22 new property insurers, competitive market choices for Louisiana insurance consumers, a 50 percent reduction in the residual market population for home insurance and a reduction in "red tape" associated with insurer rate filings.
In response to the report, and in reflection on this anniversary, Bradley Kading, president and executive director of the Association of Bermuda Insurers and Reinsurers (ABIR), the association representing the interests of 20 commercial insurers and reinsurers with underwriting operations in Bermuda, issued the following statement:
"The steady hand of Louisiana Insurance Commissioner James Donelon is responsible for the creation of a stable and competitive property insurance market in Louisiana in the years following the devastation left by Hurricane Katrina. Consumers in Louisiana today are reaping the benefits of Commissioner Donelon's leadership and courage in steering the state through a politically challenging time."
"As the country faced its worst-ever hurricane loss event and the southeast tried to dig out from seven of the largest land-falling hurricanes in 2004 and 2005, it would have been politically expedient for policymakers to shift the home insurance market to state run enterprises. Instead, Commissioner Donelon focused policymakers on important hazard mitigation measures such as the new statewide building code and efforts to attract new home insurers to the market in an attempt to reduce an overconcentration that had previously existed in a few leading carriers. By welcoming private sector insurers and reinsurers, Commissioner Donelon eliminated regulatory red tape, and gained the support of the governor and state legislature along the way."
"As we reflect on the 10-year anniversary of Hurricane Katrina, let us congratulate the Louisiana Department of Insurance and Commissioner Donelon for the tough choices they made over the last decade to ultimately improve the home insurance market that exists in the state today."
When Hurricanes Katrina, Rita, and Wilma hit Louisiana in 2005, more than 60 percent of the insurance claims payments came from foreign insurers and reinsurers, including those in Bermuda. According to economic research conducted by GSP Consulting Corporation in 2007, Bermuda reinsurers paid an estimated $17 billion in claims for the trio of storms. The payments in Louisiana alone were enough to rebuild an estimated 45,000 homes, along with another 24,000 homes in Mississippi.
About ABIR: The Association of Bermuda Insurers and Reinsurers (ABIR) represents 20 commercial insurers and reinsurers with underwriting operations in Bermuda. Bermuda is the center of global expertise on underwriting for catastrophe risk transfer products. For more information, please visit: www.abir.bm
Contact: Bradley.Kading@abir.bm | @abir_bermuda
SOURCE Association of Bermuda Insurers and Reinsurers (ABIR)