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Louisiana P&C premiums fall in 2025, but auto litigation abuse persists
Triple-I said private passenger auto premiums dropped 5.8% in 2025, but it flagged that Louisiana personal auto claims litigation rates remain more than twice the U.S. average.
Louisiana’s property and casualty insurance market saw its first broad rate relief of the decade in 2025, with premiums across all lines combined falling by an average of 0.4% statewide, according to a new Triple-I Issues Brief.
The report highlighted a sharp improvement in private passenger auto, where premiums declined an average of 5.8%, contributing to a statewide reduction of more than $340 million. Triple-I said the broad-based improvement reflected lower accident frequency and early benefits of legislative reforms aimed at curbing legal system abuse.
Despite the 2025 declines, headwinds remain, with homeowners insurance rate growth continuing but at a slower pace. Triple-I said homeowners premium growth slowed to 4.6% in 2025 from 10.4% in 2023, and it cited nine rate decreases filed by homeowners insurers in 2025, the highest number since 2020, along with 17 new insurers entering since 2024.
Triple-I said legal system abuse is still deeply embedded in Louisiana’s claims environment, driving costs for policyholders. It pointed to factors including misuse of assignment of benefits, rampant claim fraud, and third-party litigation funding, noting Louisiana personal auto claims litigation rates are more than twice the U.S. average and bodily injury claims run nearly double the national norm, while emphasizing that more legislative work is needed.