Lawmakers pass sweeping insurance changes—but will lower rates follow?

Louisiana lawmakers ended the 2025 legislative session with a flurry of insurance reforms aimed at addressing the state’s sky-high coverage rates—but not without some conflict, Louisiana Illuminator reports. 

While Gov. Jeff Landry touted a “balanced approach” targeting both insurers and trial lawyers, his surprise veto of a tort reform bill backed by fellow Republican Sen. Alan Seabaugh sparked intraparty tensions. Seabaugh’s bill would have weakened the state’s “bad faith” statute, which holds insurers accountable for delaying or denying claims.

Despite the veto, lawmakers advanced several industry-friendly measures, including restrictions on personal injury lawsuits and limitations on damages for undocumented immigrants. At the same time, consumer-focused bills gained traction, such as expanded support for fortified roofing grants, increased notice before homeowners’ policy cancellations, and protections for drivers with brief lapses in coverage.

One high-profile bill Landry did sign gives the insurance commissioner new power to block excessive rate hikes—prompting public pushback from Commissioner Tim Temple.

But even with sweeping changes, some lawmakers remain skeptical that rates will actually fall. “I talked to people in the insurance industry who tell me none of this is gonna make rates go down,” Sen. Jay Luneau, D-Alexandria, said, citing statements from the heads of tort reform associations. 

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