• Here’s what happened: After rampant post-hurricane lawsuit abuse caused property insurance costs to skyrocket and limited availability in Louisiana, lawmakers are considering common-sense reforms to help curb abusive insurance litigation.
• Remind me: Following Hurricanes Laura and Ida, Louisiana’s property insurance markets have been in crisis due to the influx of unnecessary litigation.
  • One Houston-based firm is in the hotseat for it’s abusive litigation practices in Louisiana, incurring sanctions and even being suspended from practicing law.
• By the numbers: Between 2020 and 2021 post-hurricane lawsuits filed in connection with claims closed without payment surged from roughly 1% to around 20%–making Louisiana one of the most litigious states in the nation at the time, according to the National Association of Insurance Commissioners.
• What’s the fix? Clarifying timelines in the claims process and proof of loss, and giving both sides more time to resolve disputes before going to court.
• What about Texas? Louisiana’s property insurance issues are reminiscent of the scheme storm-chasing lawyers used in Texas, first with TWIA after hurricanes and then with private insurers after hailstorms. It seems after the Texas Legislature passed a common-sense reform in 2017 to address this issue, the storm-chasing lawyers took their playbook to Louisiana, instead.
• TLR Thoughts: A lawsuit should be the last resort to resolve a dispute, not the first. When dishonest lawyers abuse the legal system, we’re all left paying the price with skyrocketing premiums and fewer insurance options.

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