Top 10 P&C Insurer Farmers Insurance Returns to Louisiana
Insurance Commissioner Jim Donelon has approved rate and form filings for
Farmers Insurance (Farmers), the nation's ninth largest property and casualty
insurer, to return to the Louisiana market this month with auto, homeowners,
condo and renters insurance.
"The addition of a major national company to the roster of insurers offering
property and automobile insurance in our state is a huge win for consumer
choice and cost," said Commissioner Donelon. "Recruiting more insurers —
large and small — to write policies in Louisiana is part of our strategy
to increase competition and put downward pressure on rates. I'm very glad
to welcome Farmers back to our market."
Farmers began selling homeowners policies in Louisiana in 1999. Its market
share in Louisiana peaked in 2007 when it became the seventh largest homeowners
insurer in the market with 4.1% of the state's policies and $56.2 million in
direct written premium. But the insurance group began shedding policies in our
difficult market after Hurricane Katrina and exited in 2014, leaving only a
subsidiary, Foremost Insurance Co., doing residential property business in
Louisiana.
The California-based Farmers decided to return to Louisiana as part of a
national expansion to the East and South. In the past decade, it has expanded
into Florida, Connecticut, Georgia, Maryland, New Jersey, New York, Pennsylvania,
South Carolina, Kentucky, and Mississippi. Louisiana will be the 40th state where
the company sells insurance under the Farmers brand.
"While this decision is based on their national marketing strategy, I'm certain the
company noticed our state's effort to reform our tort laws and that initiative made
our state more attractive to them than was the case when they exited our market in
2014. There is no doubt this additional competition will benefit our citizens,"
Commissioner Donelon said.
According to the National Association of Insurance Commissioners, Farmers Insurance
Group was the ninth largest property and casualty insurer by premium in 2019, the
most recent year for which data is available.
Farmers will do business in Louisiana under the names Farmers Insurance Exchange
and Truck Insurance Exchange. Farmers plans to offer policies in all 64 parishes.
As Farmers returns to the market, the Louisiana Department of Insurance has now
recruited 32 new property insurance companies to Louisiana since 2006.