Louisiana insurance coverage commissioner faces intraparty challenger
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BATON ROUGE, La. (AP) – The Louisiana insurance coverage commissioner’s race on the Oct. 12 poll is a contest between two Republicans, the one who’s held the job for greater than a decade and an opponent who says the state’s insurance coverage local weather has worsened throughout that tenure.
Jim Donelon, a former state lawmaker from Metairie who’s been insurance coverage commissioner since 2006, mentioned he’s restored integrity to and eliminated corruption from an workplace that noticed three former commissioners serve jail time. He mentioned he helped draw new corporations to a property insurance coverage market devastated by hurricanes Katrina and Rita in 2005.
“I’m proud to inform you that in the present day we’ve extra insurers doing enterprise in our state throughout all strains than ever earlier than,” Donelon mentioned at a Monday candidate discussion board. “That competitors has resulted in decrease charges for customers of auto, employees comp and owners’ insurance coverage.”
However his opponent Tim Temple of Baton Rouge, president of an actual property administration firm, described a unique insurance coverage outlook for Louisiana. He mentioned Donelon has accomplished too little to decrease car and industrial trucking insurance coverage charges.
“Louisiana wants a commissioner who understands {the marketplace}, the distribution channels, and is devoted to creating insurance coverage inexpensive once more,” Temple mentioned. “Commissioner Donelon is the architect of the worst insurance coverage market in America.”
At a discussion board held by the Press Membership of Baton Rouge, Temple described his 20 years of prior work within the insurance coverage business and repeatedly criticized Donelon’s administration of the division, notably on automobile insurance coverage charges.
“Louisiana’s probably the most unaffordable state in America for insurance coverage. Our non-public passenger auto charges are the second highest within the nation and forecast to be No. 1 subsequent yr,” he mentioned.
Donelon pointed to price cuts just lately introduced by three corporations that he mentioned will decrease premiums for 1.5 million drivers. However he additionally acknowledged: “We nonetheless have challenges in our auto insurance coverage market.”
The incumbent insurance coverage commissioner mentioned he’ll work once more with state lawmakers to attempt to place extra limits on the civil litigation system, aimed toward lessening the damages awarded in opposition to insurance coverage corporations.
“It’s our damaged authorized system that’s the longtime explanation for our insurance coverage charges being excessive,” Donelon mentioned.
Whereas enterprise teams are pushing the so-called “tort reform” proposals, critics say there’s no proof such authorized system adjustments would decrease automobile insurance coverage charges and the adjustments may hold folks injured in automobile accidents from sufficient compensation. A Senate committee filled with attorneys killed a sweeping civil litigation system rewrite earlier this yr.
Temple steered Donelon has accomplished little to push the trouble.
“He’s had 14 years as commissioner to move tort reform and decrease charges,” Temple mentioned. “And he’s failed.”
Temple mentioned he’d deal with rising competitors in Louisiana’s insurance coverage market, reaching out to corporations which have left the state. He mentioned he’d decide what regulatory adjustments would deliver the businesses again to the state and he’d work to enact them.
Donelon steered a few of these regulatory adjustments may result in larger insurance coverage charges for purchasers.
Temple has put greater than $1 million of his personal cash into the race to problem Donelon, and he’s outspent Donelon thus far. However Donelon had $913,000 in his marketing campaign account at first of September to spend on his last promoting blitz, in comparison with $175,000 for Temple.
Each males are taking marketing campaign contributions from the insurance coverage business.
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Comply with Melinda Deslatte on Twitter at http://twitter.com/melindadeslatte
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