Louisiana Insurance Commissioner Jim Donelon recently held a press conference to address the cancellation of approximately 29,000 policies by insurance company Lighthouse Excalibur.
Years of severe storms have resulted in costly insurance claims in the state, overwhelming insurance companies to the point of forcing several of them — like Lighthouse Excalibur — to bail out.
At the press conference, Donelon said Lighthouse Excalibur had $316 million to pay claims before Hurricane Ida; he had predicted that Ida would cost $200 million. However, Donelon noted that 16,000 claims were filed as a result of the hurricane, and the storm ultimately cost the Excalibur flagship an even more $440 million.
“Right now we’re trying to stop the flow of businesses leaving our state and some are just suspending their writings,” Donelon said. “Our goal is to get coverage in the private sector for people whose companies have gone out of business or gone into receivership.”
As local outlet WDSU News reported, Donelon also announced that two other insurance companies were pulling out of the state: Southern Fidelity and Maison. The cancellation of Maison would affect some 13,000 policyholders after June 30, while Southern Fidelity would affect another 42,000.
Read more: Another Florida insurer on the brink of insolvency
Southern Fidelity is not only on the ropes in Louisiana, but also in Florida. The company was ordered by the Florida Office of Insurance Regulation to prepare to wind down its operations in the state after ratings firm Demotech withdrew its financial stability rating for the insurer.