Louisiana's 2026 Session: What Insurance Pros Need to Know
Louisiana lawmakers open the 2026 session Monday with insurance costs, school funding, AI oversight, and carbon capture on the table. For carriers, MGAs, brokers, and adjusters, the big levers are clear: rating inputs for auto and property, mandated mitigation discounts, and new compliance rules for AI-driven customer interactions.
"We want to make sure we're fiscally responsible," said Senate President Cameron Henry. At the same time, pressure is building to tackle premium pain, strengthen roofs, and set ground rules for AI tools that touch consumers.
Auto and Property Pricing: Credit Scores and ZIP Codes Face a Ban
Sen. Royce Duplessis has filed a bill to prohibit the use of credit scores and ZIP codes in setting premiums. He argues the practice can produce unfair outcomes - even to the point where a driver with a DUI but strong credit pays less than a driver with a clean record and weak credit.
If this moves, expect a quick pivot in rating plans, filings, and segmentation strategy. You'll need to lean harder on loss-driving variables with a clear nexus to risk: verified driving history, violations, mileage/telematics, prior claims, garaging characteristics beyond simple ZIP codes, vehicle safety features, and persistency.
Background for your actuarial and compliance teams: the NAIC's overview on credit-based insurance scores offers useful context on consumer impact and regulatory scrutiny. See NAIC's explainer.
Fortified Roofs: A Floor for Discounts and More State Funding
Duplessis also wants carriers to provide at least a 20% discount for certified fortified roofs. Today, companies can set their own levels, which can mean minimal or no discount in practice.
The state currently offers a $10,000 tax credit and grants awarded by lottery, but that often falls short. Average fortified roof costs range from $16,000 to $20,000, and lawmakers signaled an appetite to add funding and close the gap.
Operationally, this points to new verification flows, vendor partnerships, and fraud controls. It's also an underwriting and reinsurance story: more fortified roofs can reduce cat losses, stabilize coastal books, and justify lower cat loads in rating - if you can validate the standard. Learn the IBHS FORTIFIED standard.
Education Funding: Indirect Effects to Watch
Gov. Jeff Landry wants to double the Louisiana GATOR Scholarship Program from $44 million to $88 million, but Henry and Rep. Delisha Boyd pushed back. Lawmakers will also review the Minimum Foundation Program that distributes about $4 billion to public schools and hasn't been updated in more than 30 years.
For insurers, any redistribution of funds could affect local tax bases, school district budgets, construction timelines, and municipal risk exposure. Keep an eye on bond activity, facility upgrades, and contractor demand in districts that see meaningful changes.
AI and Chatbots: New Guardrails That Touch Insurance Operations
Rep. Boyd filed legislation aimed at AI chatbot providers: ban selling user chat logs, clear disclosure when users are engaging with a bot rather than a human, and monthly risk assessments - with a focus on protecting minors. If you use chatbots for quoting, claims FNOL, billing, or service, this lands squarely in your shop.
Prep now: add in-line bot disclosures, tighten consent and data-retention policies, audit third-party vendors, and set up a monthly model-risk review. Also confirm your training data and prompt logs aren't being monetized or repurposed in ways that conflict with the bill's language.
For a deeper look at how these shifts intersect with underwriting, pricing, and claims automation, see AI for Insurance.
Voting Rights and Carbon Capture: Peripheral but Important
Duplessis also has a voting rights bill pending while Louisiana awaits the U.S. Supreme Court's decision in Callais v. Louisiana. Direct insurance impact is limited, but any large-scale electoral changes can influence municipal risk and litigation climates over time.
Carbon capture will spark debate, especially in central and north Louisiana. For insurers, that's construction risk, environmental impairment liability, potential subsidence/seismic considerations, and long-tail liability around storage sites. Expect more technical underwriting guidelines and tighter exclusions or endorsements as projects move forward.
Quick Action List for Carriers, MGAs, and Brokers
- Run sensitivity tests removing credit score and ZIP code; quantify indicated rate shifts and cross-subsidies.
- Draft contingency filings and rating rules that elevate loss-linked variables (violations, telematics, prior claims).
- Calibrate a 20% fortified-roof discount scenario; model loss-cost impact by peril and territory.
- Stand up roof-verification workflows and vendor due diligence; train SIU on documentation standards.
- Add chatbot disclosures, halt any sale of chat logs, and schedule monthly model-risk assessments.
- Update privacy notices and vendor contracts to reflect data-use restrictions and retention limits.
- Track education funding and local capital plans that may alter commercial exposure and surety demand.
- Establish underwriting guidance for carbon capture construction and storage liabilities.
Bottom Line
Lawmakers are lining up tangible moves on rating inputs, mitigation incentives, and AI compliance. Build scenarios now, so you're not scrambling when the first committee vote lands.
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