Louisiana's roughly 5,100 commercial policyholders stuck with the state's insurer of last resort now have somewhere else to turn. Property Insurance Company of America has offered to take over every commercial policy currently covered by Louisiana Citizens Property Insurance Corporation, with premium cuts ranging from 15% to 40% for those who make the switch.
A Statewide Offer With a Deadline
Governor Jeff Landry announced the offer, confirming that Property Insurance Company of America, known as PICA, is proposing to absorb all commercial policies now covered by Louisiana Citizens, according to WVUE. Louisiana Citizens currently holds approximately 5,100 commercial policies, per the Louisiana Department of Insurance. Under the state's Round 24 depopulation plan, policies are slated for assumption by participating carriers on Dec. 1, 2026, according to the Louisiana Citizens Property Insurance Corporation. Policyholders can remain with Citizens, but Landry said those who stay will end up paying more.
Round 24 is part of a broader push to shrink the size of the state-backed insurer and expand private market options for consumers. Louisiana Citizens has conducted six depopulation rounds since 2024, part of that broader effort.
Why Rates at Citizens Run High
Louisiana Citizens exists as the state's insurer of last resort, meaning it is legally required to charge more than private competitors rather than compete with them. Under Louisiana Revised Statute 22:2303, Citizens must charge rates at least 10% higher than the top private insurers in each parish, though Act 757 of 2024 temporarily paused that surcharge requirement through the end of 2027, per Citizens board documents reviewed by the same agency. Even before PICA's takeover proposal, the Citizens board had approved a proposed commercial filing with an overall 14.4% decrease for filing with the Department of Insurance.
How Louisiana Got Here
The current push to move policies off Citizens traces back to the devastating 2020 and 2021 hurricane seasons, which triggered a wave of insurer failures across the state. Insurance companies paid or set aside more than $23 billion in property claims from those two seasons alone, led by $9.1 billion from Hurricane Laura in 2020 and $13.1 billion from Hurricane Ida in 2021, according to the Insurance Information Institute. Eight Louisiana homeowner insurers had become insolvent following those storm payouts, while at least 12 companies submitted withdrawal notices, the institute found.
That collapse pushed thousands of policyholders onto Citizens, which swelled to a peak of about 140,000 policies in 2022 before shrinking by roughly 20% to approximately 114,000 policyholders in June 2026 as new carriers entered the market, Hoodline reported in its prior coverage of the state's insurance recovery. Lawmakers also responded to the insolvency wave with insurance reforms.
State Officials Frame the Offer as a Turning Point
Insurance Commissioner Tim Temple said PICA's offer to quote thousands of Louisiana Citizens commercial policies shows the state's property insurance market is improving. State Senator Kirk Talbot said insurance reforms increased insurers' solvency requirements and the amount of reinsurance required, changes he credits with drawing private capital back into Louisiana. Moving commercial policies out of Citizens will lower the insurer's exposure and reinsurance costs, officials say, and that lower exposure is expected to improve Citizens' overall financial condition going forward.
PICA, the company behind the offer, was vetted by the insurance commissioner and complies with all regulations and requirements imposed by the Louisiana Department of Insurance, according to the announcement relayed by WVUE. The company holds a Demotech financial stability rating of A, Exceptional, and is domiciled in Mississippi, headquartered in Pass Christian. PICA is proposing to take over commercial policies in the state.
The Affordability Backdrop
The stakes for Louisiana business owners and homeowners alike remain steep. Louisiana homeowners spend an average of 3.84% of their household income on property insurance — double the national average of 1.93% — making it the least affordable property insurance market in the country, according to the Public Affairs Research Council of Louisiana. That backdrop helps explain why a 15% to 40% premium cut from a private carrier is drawing statewide attention, even as commercial policyholders weigh whether to make the jump or remain with Citizens at a higher cost.
