The insurance industry prefers the approach championed by Blanco, changes in state law that are designed but not guaranteed to entice more carriers to Louisiana. It’s assumed that this direction will attract more companies and policy rates will decrease as competition increases down the road.
Blanco is backing Insurance Commissioner Jim Donelon's unique proposal to offer $100 million in financial incentives to carriers that agree enter the coastal Louisiana insurance market. South Carolina has a new $6 million plan that includes tax credits for insurers, but Donelon's plan is considered the first in the country that would offer taxpayer cash directly to private insurance firms, much as states offer money to other industries, such as auto manufacturers, to attract jobs.