Governor Edwards explores Louisiana insurance market challenges and solutions with Lloyd’s of London
LONDON, UK – Governor John Bel Edwards and a delegation of state officials and business leaders met with Lloyd’s insurance market leaders on Thursday to explore possible solutions to the insurance market challenges facing Louisiana businesses and homeowners. Discussions focused on Louisiana’s relationship with the insurance industry and how the state can keep major insurers engaged in the practice of protecting Louisiana’s commercial and residential investments.
With roots dating back to the 1600s, Lloyd’s is not a corporation but a group of underwriting syndicates, specializing in both general insurance and the reinsurance cover that individual insurance companies obtain to spread their risk. Louisiana has been one of Lloyd’s main markets for many years.
“Lloyd’s is vital to our energy industry, as well as other major sectors of our economy,” Governor Edwards said. “Today’s meetings focused on Lloyd’s ability to insure and reinsure risks in Louisiana, which is an important aspect of maintaining our healthy business climate. We’ve had good discussions with senior management, underwriters, adjusters and others about their perspective on the Louisiana market and what we can do from a legal or regulatory standpoint to make the state more attractive to industry.
Lloyd’s representatives shared their views on long-term insurance and reinsurance trends in Louisiana. They identified the economic, political, legislative and regulatory factors that underwriters consider when evaluating where to do business. They also discussed how the risk modeling used by the Lloyd’s insurance market affects Louisiana.
“Insurance rates are determined by many factors today and we want to better understand the pressures in insurance markets,” Louisiana Economic Development Secretary Don Pierson said. “Today those issues are inflation, climate change and certain regulatory requirements. How we think about and deal with issues that have a significant impact on premiums is key to supporting a resilient insurance industry that is important for both businesses and citizens.”
Insurance executive Tim Temple, president of Temptan, LLC, and president and chairman of the Louisiana Committee of 100 for Economic Development, helped organize Thursday’s meetings.
“I am honored to lead our C100 delegation on this economic development trip to meet UK-based stakeholders in our state,” Temple said. “Our encounters with Lloyd’s markets are particularly important today because Lloyd’s plays a crucial role in the types of insurance and reinsurance that keep our economy running. We appreciate the opportunity to work with Governor Edwards to build stronger relationships with these important partners.
Insurance coverage is a critical issue for many people in Louisiana, with market conditions affected by the recent series of natural disasters affecting the state. As a result, some Louisiana homeowners and businesses have found insurance harder to find or more expensive. The Governor’s discussions with Lloyd’s officials focused on the role of a strong reinsurance market in helping individual insurance companies manage catastrophe risk.
Thursday was the first full day of meetings on Governor Edwards’ economic development mission to London. On Friday, he will meet with executives from companies managing large energy transition investments in Louisiana, including Shell, Cheniere Energy, Linde and Drax. In addition to a contingent of C-100s, the governor is joined in the trade mission by representatives from LED, the Department of Transportation and Development, the Louisiana Offshore Terminal Authority, the Port of New Orleans and Port of South Louisiana.