Louisiana HB 148: Increased Insurance Regulations and Increased Consumer Participation

The extent to which state and federal governments regulate the market pendulates over time, but the ultimate goal is to ensure a symbiotic relationship between consumers and producers. In response to growing concerns from insurance customers, the Louisiana legislature enacted House Bill 148 (HB 148) in an attempt to stabilize the insurance industry and foster greater trust by increasing transparency in business operations.

Although the increase in regulation and shift of power from the hands of insurance companies to the Insurance Commissioner may appear to hinder insurance companies’ free-market practice, HB 148 could serve as a means of instilling greater trust in the market, ultimately promoting greater business between the insured and insurer. By shedding light on business practices while still protecting sensitive information, and by ensuring fair but profitable premiums, HB 148 should serve to encourage consumer participation without undermining the autonomy or profit of the insurer.

HB 148

Enacted into law on May 28, 2025, HB 148 attempted to overhaul the insurance industry in Louisiana by shifting power to the Insurance Commissioner and requiring a greater burden be placed upon the shoulders of insurance companies. This bill made several changes to existing statutory law, including amending and reenacting R.S. 22:881.1, 1452(C) and (6), 1454(A) and (B)(5), 1464(D), and 1465(A)(1) and (4), and repealing R.S. 22:1451(D), 1452(C)(4) and (15), 1453, and 1455.

R.S. 22:881.1 was amended to include that when an insurer issues a renewal policy for homeowner’s or private passenger motor vehicle insurance within Louisiana, the insurer shall provide the premium last issued by the insurer with the respective renewal policy. It also requires that an insurance company disclose all discounts offered that may help reduce insurance premiums for existing or prospective policyholders.

R.S. 22:1454, which concerns rating standards and methods, now reads that insurance rates shall not be excessive, inadequate, or unfairly discriminatory. The statute previously provided that such restrictions applied “in a noncompetitive market,” but this language was removed and now applies the restrictions across all plains of insurance premiums; regardless of whether the market is competitive or not. When determining the rate offered when acquiring insurance, the Insurance Commissioner may now also consider rates as they adhere to accepted actuarial standards.

R.S. 22:1464, which concerns an insurer’s filing of its rates to the Insurance Commission, previously required an insurer to disclose all its rates, supplementary rate information, and supporting information except for information that is confidential, trade secret, or proprietary information. The statute originally placed the determination of what fell within the purview of confidential, trade secret, or proprietary information in the hands of the insurer. However, the law now shifts the power to the Insurance Commissioner, upon whose determination now defines what is considered a required disclosure.

Although the power has now been placed in the Insurance Commissioner’s hands, an insurer may request particular information to be marked as confidential, trade secret, or proprietary information prior to its disclosure. The Commissioner is then required to determine the nature of such information and notify the insurer. The insurer is now provided with an opportunity within ten days of receiving the Commissioner’s determination to either disclose the subject matter at issue or request a hearing before an administrative law judge (“ALJ”), staying the Commissioner’s determination until an ALJ rules on the matter. This hearing before an ALJ is conducted in a summary manner, meaning the proceedings are expedited and remove ordinary incidental formalities not necessary to the proceeding as a whole. It also permits public examination or reproduction of records not deemed confidential, trade secret, or proprietary information.

R.S. 22:1465 originally provided that the Commissioner shall disapprove of an insurance rate if it is determined to be inadequate or unfairly discriminatory only in a competitive market and shall disapprove of a rate if it is determined to be excessive, inadequate, or unfairly discriminatory only in a noncompetitive market. However, the law now provides that the Commissioner shall disapprove of a rate, regardless of the insurance market’s competitiveness, if it is determined that the rate is excessive, inadequate, or unfairly discriminatory.

Impact on the Insurance Industry

HB 148 restructures the roles and responsibilities for motor vehicle and homeowners’ insurance by requiring disclosure of clear information to its policyholders about how premiums are determined and how an insured might reduce their premiums, as well as provide a side-by-side comparison of the former and renewed policy so the insured can see the change in their premiums. This permits consumers to make better-informed decisions about their insurance policies, which is paramount in the market of insurance.

The bill also strengthens the Commissioner’s authority to approve or disapprove increases in premium rates without any concern about whether the market an insurer is operating within is competitive or not by removal of such language and expanding the grounds used to reach the Commissioner’s determination. By granting more power to the Commissioner, fair pricing practices may be better guaranteed, which signals a shift in Louisiana’s insurance industry and modernizes the industry’s infrastructure for the good of the State and of its people.

In an attempt to continue placing power and information in the hands of consumers, most rate filings and documents used to support such rates will be accessible to the public unless said records are deemed confidential, trade, secret, or proprietary. However, the decision-making power as to the nature of such records is held by the Commissioner, subject to an insurer’s request for a hearing before an ALJ. This greatly enhances the role of the public in the insurance industry while protecting the disclosure of information truly confidential, trade secret, or proprietary.

Historically, automobile and homeowners’ insurance has been left to the ebb and flow of a free market, but this practice has created hesitation for consumers to engage in the market. Therefore, HB 148 increases protections for consumers while protecting sensitive information of the insurers, improves transparency in establishing premium rates to ensure consumers are more informed, and expands the regulatory authority over the insurance industry.

Ultimately, insurers will be required to adjust their business practices but when consumers feel more protected, they are more likely to conduct business with insurers, which serves the interest of both parties in a transaction.