Louisiana Considering Doing Away With LIRC

Seen at Insurance Journal:

The House Insurance Committee approved, without objection, a bill backed by Gov. Kathleen Blanco and Insurance Commissioner Jim Donelon to abolish the Louisiana Insurance Rating Commission, a panel appointed by the governor that can prevent insurers from imposing rate hikes of more than 10 percent. The rating commission has no power to block rates of 10 percent or less.[...]

Under the bill, the state insurance department would create a new consumer’s advocate position, to field complaints from policyholders and argue on their behalf within the department. The advocate could make arguments against rate increases he or she might deem unfair. The insurance department would still retain power to approve and question rate hikes.

Folks who have had to work with the LIRC tend to have some “interesting” stories about the organization, although I do note that the relative “interestingness” of those stories has dropped since the 10-point band was instituted.

The Commission is definitely a holdover from a slower, simpler time; given the advances in rating methodology and an increased volume of rate filings, it’s not surprising that there is a call to adopt a more modern, nimble regulatory structure.

However, I express that opinion with some wistfulness. Some of the aforementioned “interestingness” is part of what makes rate filings fun (although, I do have an odd sense for what “fun” is).