MALVERN, PA — Louisiana property and casualty insurance rates declined across all lines in 2025 for the first time this decade, though elevated litigation and injury claims continue to pressure affordability, according to an analysis released by the Insurance Information Institute.
Average statewide premium rates fell 0.4% last year, reversing annual increases recorded from 2021 through 2024. Private passenger auto rates declined 5.8%, reducing premiums statewide by more than $340 million.
Approved personal auto rates in effect through May 2026 were down another 3.9%, according to the institute’s analysis of S&P Global Market Intelligence data. That followed an average decrease of 2.5% in 2025.
The Insurance Information Institute, also known as Triple-I, attributed the declines to lower accident frequency and early effects from legislation aimed at reducing litigation-related insurance costs.
Homeowners insurance rates continued to increase, though the pace slowed to 4.6% in 2025 from 10.4% in 2023.
Nine homeowners rate reductions were filed last year, the most since 2020. Seventeen insurers have entered Louisiana’s homeowners market since 2024, adding competition following years of market strain.
“I am not satisfied with where rates are today and expect the reforms we’ve made in recent years to reduce costs for all insurers,” Louisiana Insurance Commissioner Tim Temple said.
Louisiana’s personal auto claims litigation rate remains more than twice the national average, while bodily injury claims are nearly double the U.S. norm, according to Triple-I.
The organization identified claim fraud, assignment-of-benefits practices and third-party litigation funding as continuing sources of higher insurer costs.
“The data show that legislative reform works,” Triple-I Chief Executive Officer Sean Kevelighan said. “But the work is far from finished in Louisiana.”
Third-party litigation funding allows outside investors to finance lawsuits in exchange for a share of settlements or judgments. Triple-I linked the practice to the growth of verdicts worth at least $10 million, which it reported have more than quadrupled nationally since 2020.
Louisiana ranked among the 10 states with the most such verdicts in 2024. Legislation seeking expanded oversight of litigation funding failed in committee in June after an earlier version stalled in 2025.
The state is also increasing spending on property mitigation as it seeks to limit storm losses and attract insurers.
The Louisiana Fortify Homes Program received $80 million for 2026 and expanded eligibility to inland parishes exposed to rising flood risk.
The program provides grants of as much as $10,000 for roof upgrades meeting Insurance Institute for Business & Home Safety standards. Completed improvements will qualify for hurricane premium discounts ranging from 16% to 49% beginning Jan. 1, 2027.
“Resilient homes mean fewer claims, lower losses and ultimately lower premiums,” Kevelighan said.
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