A headline in several regional newspapers caught my eye. “Homeowners Insurance Rate Increases Have Slowed,” said one front page banner. I guess that’s supposed to be good news. But in my home state of Louisiana, rates have skyrocketed since 2005 — by an astounding 50%. No other state in the country has experienced such dramatic increases. And we continue to read that it’s all the fault of Katrina. There have been only a few major weather-related losses in recent years, but the rates continue to go up. There must be something rotten in Denmark. Hmmm – make that Louisiana.
Can you put lipstick on a pig? Well, business leaders are certainly giving it their best shot in an effort to counteract the fact that Louisiana’s outrageously expensive insurance rates make the Bayou State an environment hostile to the attraction of new businesses. But, last week, compounding the problem, new figures showed automobile rates continue to rise, along with insurance rates for every homeowner. And unfortunately, both legislators and insurance regulators are assuming a blasé attitude — “that’s just the price you have to pay for living in Louisiana.”