2 Louisiana insurance companies fail after Hurricane Ida

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Insurance companies operating in Louisiana will be charged at least $100 million to pay claims of two failed property insurers who went belly up in Hurricane Ida’s aftermath.

FILE - Debris and electrical wires are piled up in a front yard in Chauvin, La., on Sept. 27, 2021. In the aftermath of Hurricane Ida, Louisiana lawmakers said Wednesday, Dec. 1, 2021 they are seeing slow responses to damage claims, constant switch-ups of insurance adjusters assessing the destruction and low payment offers forcing people unnecessarily into litigation to get a fair deal.

“Our whole goal is to pay the people as timely and effectively as possible, but we’re in a bit of a transition period,” said John Wells, LIGA’s executive director. “We’re talking days and weeks, not months and years, to get people paid.” Hurricanes Laura, Delta and Zeta in 2020 cost insurers $10.6 billion. Hurricane Ida, which struck in August, is projected to cost insurers between $20 billion and $40 billion.

 

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