In a letter to Louisiana legislators, the Consumer Federation of America urged their support for SB 484, which would require insurance companies to offer substantial premium discounts or rate reductions for homeowners and commercial property owners who undertake mitigation measures or build new properties intended to reduce risk.

This bill would help ensure that the benefits of mitigation efforts are passed along to consumers, instead of being kept by insurance companies solely to increase their profits. Companies would have to provide premium discounts or insurance rate reductions in the range of 20-30%.

Climate change is causing stronger and more frequent hurricanes and other natural disasters, as well as extreme weather conditions, which, in conjunction with ever escalating reinsurance prices from the unregulated global reinsurance market, are resulting in skyrocketing homeowners insurance costs for Louisiana consumers. At least twenty insurance companies have left the state over the past three years and the Legislature enacted a $45 million incentive program to attempt to lure companies back.