A new Louisiana law now requires insurers to disclose the previous policy’s premium whenever they issue a renewal to a policyholder.
Louisiana Insurance Commissioner Tim Temple issued an advisory letter to insurers this week, informing them of the new disclosure requirement. The rule stems from a contentious law aimed at expanding the commissioner’s authority to rein in what are seen as "excessive" premium rates.
House Bill 148 requires that the previous policy premium be clearly displayed and positioned near the renewal premium for easy comparison.
Temple said he is currently in the process of drafting a regulation to implement the rule established under House Bill 148 during this year’s legislative session.
Due to legally required delays in the rulemaking process—and in response to concerns from the insurance industry about implementing the new disclosure requirement—insurers have been granted a grace period to develop the necessary systems to comply with the rule.
All insurers are required to fully comply with the rule by January 1, 2026.
HB 148 was one of the most contentious insurance-related measures passed during this legislative session. Both Commissioner Temple and representatives of the insurance industry opposed the bill, which amends state law to mandate that insurance rate filings must not be excessive, inadequate, or unfairly discriminatory—regardless of the market's level of competition.
“I think this would be devastating to insurance companies in evaluating wanting to do business here,” Temple told Insurance Journal before the bill received a final vote in the House.
The bill would effectively grant the insurance commissioner authority to reject any rate increases deemed "excessive," even if insurers argue the changes are actuarially justified.
HB 148, sponsored by Jeff Wiley (R-Maurepas) and publicly endorsed by Governor Jeff Landry, is praised by supporters for aligning Louisiana with states such as Texas, Mississippi, South Carolina, Florida, and Alabama by empowering the insurance commissioner to regulate and control premium rates.
Temple warned that the law could discourage insurers from doing business in the state.
“As a regulator, I still have to make sure that insurance companies remain solvent and charge adequate rate for solvency purposes,” Temple said. “There’s an argument being made that a commissioner could artificially suppress rates, and that is not good for long term viability of a company or a marketplace.”
The bill requires insurers to disclose all available discounts that could lower homeowners or auto insurance premiums for current or prospective policyholders, with the information presented in a font size no smaller than twelve points.
The bill permits public access to rate filings and supporting documents, except when the information is deemed confidential, a trade secret, or proprietary. The insurance commissioner will make the final determination on such classifications.
The American Property Casualty Insurance Association cautioned that HB 148 is likely to exacerbate Louisiana’s ongoing crisis regarding insurance affordability and availability.
“HB 148 will politicize the process by which insurers set rates when it should be a fact-based, actuarial science-driven process. By allowing the arbitrary suppression of rates and forcing companies to share proprietary or trade secret information, Louisiana will likely teeter towards a very unstable road similar to California,” APCIA said.
