Jan
17
2008
LA Insurance Incentives Draw Little Interest
Author: Byron UdellThere is a state incentive program in Louisiana that was developed to revitalize the insurance injury after Hurricane Katrina: $100 million for those providers who will write policies for businesses across the state.
Despite the high dollar amount of the incentives, Louisiana’s insurance companies are not interested. Only seven companies in the state have applied for the grants. Perhaps other companies aren’t qualified or else they just don’t think that the incentives are enough to mitigate the risk of insuring businesses in the wake of Katrina.
For those who apply, the hope is to nail down one of the $2 million to $10 million grants that are available. In return, the insurance companies must commit an equal amount of their own money and use the sum of the two to write business property insurance policies.
Jim Donelon is the Insurance Commissioner in Louisiana. His hope is that the grant incentive program will generate up to $400 million in new property insurance coverage.
