The 2025 Louisiana legislative session was a rigorous 60-day period centered heavily on insurance reform. Insurance Commissioner Tim Temple praised lawmakers for maintaining focus and passing several key bills aimed at reducing insurance costs by addressing systemic cost drivers. These include excessive bodily injury claims and high litigation rates, which are significantly above the national average.

One major reform was the passage of a modified comparative fault bill by Emily Chenevert, which prevents individuals more than 51% at fault in an accident from recovering damages. This aims to curb frivolous lawsuits and reduce claim costs. Another significant change was the reform of the “Housley presumption,” which now requires claimants to prove that injuries were caused by the accident, rather than assuming causation.

Additional legislation included a “no pay, no play” bill and a medical transparency bill. The latter, though watered down, still addresses discrepancies between billed and paid medical costs for insured individuals, though it does not cover private pay arrangements—an area believed to represent a large portion of claims.

Despite these reforms, Temple expressed concern over House Bill 148 (now Act 11), which introduces subjectivity into rate-setting by allowing the Insurance Commissioner to retroactively challenge insurer profits without actuarial justification. Temple warned this could create regulatory uncertainty, discouraging insurers from doing business in Louisiana.

While the reforms are promising, Temple noted that insurers typically wait to see real-world impacts before adjusting premiums. Comprehensive reform could prompt quicker industry response, but piecemeal changes may delay rate reductions. The Department of Insurance is working to educate insurers on the new laws and encourage rate adjustments based on anticipated improvements in claims costs.

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