Louisiana is ranked No. 45 in the nation for insurance regulation in the R Street Institute’s fifth-annual Insurance Regulation Report Card. The report gives Louisiana a “D” letter grade, explaining that the regulatory atmosphere has “no special strengths” but numerous drawbacks including a “highly politicized” atmosphere, among other issues.
Louisiana Comp Blog reached out to local figures in the workers’ compensation market to ask whether they felt the poor quality of regulation at the Department of Insurance as delineated in this report was a reality for their programs.
Download the R Street Institute report in full at the bottom of this page.
Stan Harris | President and CEO, Louisiana Restaurant Association SIF:
“I believe the regulation in our workers comp market is fair and adequate. We have an engaged commissioner that, while an elected official, has continued to push for better oversight, reviewing solvency of providers and stepping up independent review of providers’ financial reporting to the state. This has not always been the case. The Commissioner is quick to act in times of crisis and provides steady, reliable and accurate information to the consumer. The professional staff endeavors to review requests and provide responses timely.
As to the management of the workers comp program within the Louisiana Workforce Commission, the new leadership of both the department and OWCA are working to gather information on best practices and implementing the required technological advancements to make reporting/objections more efficient. Assessing the challenges from the stakeholders [viewpoint] first – as they are doing – provides the opportunity for input from a broad group of constituents before they seek to enact any policy changes.”
Mark Tullis | Administrator, LCI Workers’ Comp:
“While I can’t speak about the other lines of insurance, if this report focused only on workers’ comp, there is no doubt that the Commissioner and the Department would receive an ‘A’ grade. The report ranks having a competitive market very highly, and in Louisiana we have a very strong, robust and competitive workers’ comp market, which ultimately benefits business owners with lower rates. And much of the credit for this competitive market in comp has to go to Commissioner Donelon and his staff. For markets to operate in a state they have to have confidence in the fairness and consistency of the regulator, and seeing the number of companies willing to write workers’ comp in Louisiana is firm proof of the success of the Department.”
David Bondy | CEO, LUBA Workers’ Comp:
“I think Commissioner Jim Donelon and his staff have done a very good job and continue to do so. In the R Street report, Louisiana actually scored above average in two categories: solvency regulation and underwriting regulation. Those are two of the most important areas that the Department of Insurance has to watch to maintain the health of the overall system. It seems like the R Street report is more about the marketplace in general, which is largely outside of the Department’s control. Specifically in the comp world, we do have work to do with regulatory concerns, especially the medical treatment schedule, but that’s under the Office of Workers’ Compensation, not the DOI.”
Download the report: R Street insurance regulation 2016