In 2024, insurance companies across the country issued a refusal to claim, which stopped more than 40 % of the house owners’ claims without paying any money. In Louisiana, that number was even worse – about 45 45 %. Many major insurance companies operating in the state closed more than half of all claims without giving any money to policy holders. For example, relative insurance denied about 70 70 % of its claims in 2024. Others, like spinners and elevators, were no longer behind. Even small, local companies followed the same behavior. For those who have been paying these policies for years, it is as if they have holes in their safety net.
These companies often point to underwritten disadvantages as the reason for the rise in prices. Underworite disadvantages occur when the amount of claims they pay is higher than the premium. But this is not the whole story. Although they may lose money in underworlding, they are earning much more through investment. In fact, across the country, insurance companies have lost about $ 23.5 billion in the past 20 years. But at the same time, he earned more than $ 150 billion through investment and other business activities. This is a big difference – and it suggests that they are financially fixed, even if they say otherwise.
In Louisiana, space is even wider. Companies have lost about $ 1.6 billion in underworld, but they have earned more than $ 88 billion in other areas. This means that for every lost dollar, they made $ 55 somewhere else. This raises a huge question: If they are earning so much money, why are the premiums still growing? And why are they refusing so many claims?
Another problem is how these companies transfer money. Many insurers pay a big fee to the affiliated businesses. This payment can be used to pay for claims. In Louisiana, insurance companies have paid more than $ 27 billion to these affiliates since 2004. This is the amount that can help homeowners recover after storms or other damage. Instead, it is hidden behind a complex business structure.
It all paints a disturbing picture. Homeowners are being released while insurance companies find ways to save their profits. These are not just one or two bad companies – it’s happening all over the board. And unless something changes, more and more people are going to know the difficulty when their coverage does not really cover them when they need more.
People are being asked to rely on the system, despite the refusal of the claim, buy insurance as a form of protection. But when this system is broken, or even worse – when it is ready to work against many people, it has helped – it becomes clear that further monitoring is needed. Homeowners deserve better. They deserve insurance companies who play fairly, pay while paying, and do not hide their profits while pointing to fingers. Otherwise, this crisis will not last in Louisiana – it will spread even more.
Sources:
Florida’s home insurance crisis is bleeding in Louisiana
Louisiana’s homeowners are still facing an insurance crisis. Will the legislature respond?
