FLORIDA, GEORGIA AND SOUTH CAROLINA CONTINUE TO FEEL INTENSE WIND AND RAIN FROM IDALIA. THE STORM IS LEAVING BEHIND A PATH OF DESTRUCTION FOLLOWING ITS LANDFALL IN FLORIDA THIS MORNING. HERE IN LOUISIANA, WE ARE DEFINITELY NOT SEEING THE DIRECT EFFECTS OF THAT STORM, BUT IT COULD HAVE AN IMPACT ON INSURANCE RATES IN THIS STATE. WDSU REPORTER MORGAN LENTES SPOKE TO A LOCAL INSURANCE AGENT TO LEARN MORE HOW THAT COULD IMPACT YOU. MORGAN YEAH. SO. TRAVERS WE HAVE TO REMEMBER THAT INSURANCE COMPANIES OFTEN WRITE POLICIES IN MULTIPLE STATES. THAT MEANS IF THEY GET HIT WITH THOUSANDS OF EXPENSIVE CLAIMS IN FLORIDA, THEY COULD PASS THAT EXTRA COST ON TO US HERE IN LOUISIANA, WHERE ARE THEY GOING TO GET THOSE DOLLARS TO BE ABLE TO MAINTAIN THEIR HOME AND THEIR QUALITY OF LIFE? FROM THE NEW ORLEANS METRO TO THE BAYOU, SKYROCKETING INSURANCE RATES ARE TAKING A TOLL. OUR MAIN JOB IS TO FIGURE OUT HOW TO REVITALIZE THAT. SOUTH LAFOURCHE COMMUNITY RIGHT IN THE FACE OF HIGH CONSTRUCTION COSTS, HIGH INSURANCE PREMIUMS AND HIGH INTEREST RATES. AND NOW ANOTHER STORM IS COMPLICATING MATTERS MORE AS IDALIA RAGES ACROSS FLORIDA, GEORGIA AND SOUTH CAROLINA, LOCAL INSURANCE AGENTS ARE SOUNDING THEIR OWN ALARM. HEY, IT’S GREAT NEWS SO FAR. YOU KNOW THAT WE HAVEN’T BEEN HIT BY A HURRICANE, BUT THAT HURRICANE HAS HIT IN FLORIDA. IT’S GOING TO CRAWL WAY UP INTO SAVANNAH AND CHARLESTON AND IT’S GOING TO AFFECT THAT WHOLE AREA. THERE’S GOING TO BE A LOT OF COST ASSOCIATED WITH IT. ROSS SHEILS SAYS UNFORTUNATE LATELY THOSE COSTS WILL BE SPREAD ACROSS THE COUNTRY, INCLUDING HERE AT HOME INSURANCE COMPANIES. NOWADAYS THEY ALL BUY REINSURANCE. S AND WHAT REINSURANCE IS, IS THE INSURANCE THAT THEY GET TO PROTECT THEMSELVES AGAINST MAJOR CATASTROPHES. AND THESE, THESE VERY LARGE REINSURANCE COMPANIES HAVE BEEN TAKING HEAVY LOSSES THE LAST FIVE YEARS OR SO, CAUSING THOSE COMPANIES TO RAISE RATES. AND YOUR INSURANCE PROVIDER TO DO THE SAME. SO WHAT’S THE SOLUTION, SHEILS SAYS FEWER STORMS AND FORTIFYING HOMES, SOMETHING STATES LIKE ALABAMA ARE ALREADY DOING. THEY’RE COMING BACK WITH STRONGER HOUSES THAN EVER. I THINK TO SOME DEGREE WE’RE GOING TO SEE THAT TYPE OF THING HAPPENING HERE IN LOUISIANA AND AND THAT’S GOING TO HELP. AND THE STATE IS ENCOURAGING PEOPLE TO DO JUST THAT, STARTING IN OCTOBER, LOUISIANA WILL OFFER UP TO $10,000 GRANTS TO PEOPLE WHO UPGRADE THEIR ROOF TO MEET CERTAIN INDUSTRY STANDARDS. REPORTING LIVE IN NE
Louisiana insurance agent discusses how Hurricane Idalia could impact our premiums
Many insurance companies write policies in multiple states, meaning what happens in Florida can affect us
Updated: 5:27 PM CDT Aug 30, 2023
While Hurricane Idalia will steer clear of Southeast Louisiana, local insurance agents say there could still be impacts in the form of increased premiums. Ross Shales, a consultant with Expert Insurance, told WDSU that major storms and the resulting insurance claims cost providers severely. “Insurance companies nowadays, they all buy reinsurance,” said Shales. “What reinsurance is, it’s the insurance they get to protect themselves against major catastrophes, and these very large reinsurance companies have been taking heavy losses the last five years or so, and so they’re raising their rates.”Increases, which Shales says, are being passed on to insurance providers and, eventually, policyholders.”It’s great news that we haven’t been hit, so far, by a hurricane, but that hurricane that’s hitting Florida, it’s going to crawl all the way up into Savannah and Charleston, and it’s going to affect that whole area,” said Shales. “There’s going to be a lot of cost associated with it, and those costs are going to be spread out throughout the country.”Shales said because the country is experiencing more intense weather, more often, it remains to be seen if any relief is in sight.”Climate change, it definitely appears to be causing more problems for the insurance companies,” said Shales. “The question mark is, ‘Are we going to get any relief?’ We did end up getting relief post-Katrina and Rita, where new companies came in, and they had substantially lower prices that really modified the market, but we’re not seeing that right now. It may take a year or two before we see it.”In response to our changing climate, local leaders are looking for ways to rebuild stronger structures after storms.”Our main job is to figure out how to revitalize that South Lafourche community,” said Archie Chaisson, parish president in Lafourche Parish. “In the face of high construction costs, high insurance premiums and high-interest rates, (we need to figure out) how do we make that community more resilient.”In October, the state will launch its new Louisiana Fortify Home program. The program provides up to $10,000 in grants to residents who upgrade their roofs to the latest industry standards. To learn more, click here. It is an effort that Shales said has already shown promise in Alabama.”They’re coming back with stronger houses than ever. I think to some degree we’re going to see that type of thing happen here in Louisiana, and that’s going to help,” said Shales.
While Hurricane Idalia will steer clear of Southeast Louisiana, local insurance agents say there could still be impacts in the form of increased premiums.
Ross Shales, a consultant with Expert Insurance, told WDSU that major storms and the resulting insurance claims cost providers severely.
“Insurance companies nowadays, they all buy reinsurance,” said Shales. “What reinsurance is, it’s the insurance they get to protect themselves against major catastrophes, and these very large reinsurance companies have been taking heavy losses the last five years or so, and so they’re raising their rates.”
Increases, which Shales says, are being passed on to insurance providers and, eventually, policyholders.
“It’s great news that we haven’t been hit, so far, by a hurricane, but that hurricane that’s hitting Florida, it’s going to crawl all the way up into Savannah and Charleston, and it’s going to affect that whole area,” said Shales. “There’s going to be a lot of cost associated with it, and those costs are going to be spread out throughout the country.”
Shales said because the country is experiencing more intense weather, more often, it remains to be seen if any relief is in sight.
“Climate change, it definitely appears to be causing more problems for the insurance companies,” said Shales. “The question mark is, ‘Are we going to get any relief?’ We did end up getting relief post-Katrina and Rita, where new companies came in, and they had substantially lower prices that really modified the market, but we’re not seeing that right now. It may take a year or two before we see it.”
In response to our changing climate, local leaders are looking for ways to rebuild stronger structures after storms.
“Our main job is to figure out how to revitalize that South Lafourche community,” said Archie Chaisson, parish president in Lafourche Parish. “In the face of high construction costs, high insurance premiums and high-interest rates, (we need to figure out) how do we make that community more resilient.”
In October, the state will launch its new Louisiana Fortify Home program. The program provides up to $10,000 in grants to residents who upgrade their roofs to the latest industry standards. To learn more, click here.
It is an effort that Shales said has already shown promise in Alabama.
“They’re coming back with stronger houses than ever. I think to some degree we’re going to see that type of thing happen here in Louisiana, and that’s going to help,” said Shales.
