SureChoice Underwriters Reciprocal Exchange and Elevate Reciprocal Exchange have received approval for a statewide average 7.5% rate decrease on homeowners' and dwelling policies from the Louisiana Department of Insurance.
The reduction will apply to more than 73,000 homeowners and over 17,000 dwelling policyholders, the department said.
Regulators said SureChoice attributed the filing in part to lower reinsurance costs, which eased pressure on its catastrophe-exposed book and supported the decision to cut rates.
Insurance Commissioner Tim Temple (pictured above) has been pressing reinsurers on how Louisiana can attract more capacity and reduce capital costs after several years of heavy hurricane losses and insurer exits.
He said he has met multiple times with global reinsurance providers since taking office to discuss how state-level reforms and clearer claims processes could influence their risk appetite.
"Reinsurers consistently brought up the need for Louisiana to amend the three-year rule, clarify our catastrophe claims process and put far more emphasis on resilience and mitigation programs," Temple said in a statement. "While we still have a long way to go before all Louisianans can benefit from these changes, we have made great strides and are beginning to see the results of our hard work."
Temple has also pointed to signs of easing pressure in other personal lines, particularly auto, as part of a broader shift in the state’s insurance market. The Department of Insurance has reported that Louisiana’s average private auto insurance rates declined 2.3% through July, while commercial auto rate growth slowed and more than 20 auto carriers filed rate decrease requests this year, often citing lower accident frequency and moderating loss trends.
Against that backdrop, the SureChoice and Elevate reductions add a property component to what regulators describe as an early but measurable change in pricing dynamics. Temple has said he expects competitive pressure to increase as underlying cost drivers improve, creating more room for carriers to reassess rates across multiple lines.
According to the filing, the 7.5% statewide average reduction for the reciprocals is tied to several components of their catastrophe and noncatastrophe rating structure. The rate change reflects a 3.2% decline in the hurricane base rate, a 4.6% reduction in the hurricane key factor and a 1.4% decrease in the all-other-perils factor.
