Change is on the way for Baton Rouge’s insurance market—in the taxpayer-supported National Flood Insurance Program, set to expire Sept. 30; the impact of millennials; rising auto insurance rates and changes to the federal health care law, Business Report notes in its current issue.
The magazine reviewed publicly available reports and consulted local experts to identify the nine most important insurance trends and topics that could impact Baton Rouge’s insurance market in 2017 and beyond.
On the horizon is the reauthorization of the NFIP. Lawmakers have two goals in mind: Shift as much flood insurance as possible into the private market, while making the the federal program sustain itself on the premiums paid by policyholders.
Doing both could lead to skyrocketing costs for Louisiana. Private insurers would likely cherry-pick the least risky properties, leaving home and business owners in flood-prone areas to make up the NFIP’s reported $24.6 billion deficit.
Louisiana also has long been among the most expensive states for auto insurance, and rates are likely to rise even higher. As vehicles become more technologically advanced, repairs grow more expensive. Low gas prices encourage people to drive more.
And the inability to put down our mobile devices has some of us driving more erratically than ever. While there is talk about pushing legislation in Louisiana’s next session to crack down on distracted driving, such laws have had little effect around the country so far, says Barry Blumberg, CEO of Blumberg and Associates Insurance.
“We can expect 7 percent rate increases a year for the foreseeable future,” he says.
Read about the seven other trends coming our way. Send your comments to editors@businessreport.com.
