The Advocate and the Times Picayune received a follow-up grant from the Fund after an earlier series examined commonalities among 12 insurers in Louisiana that failed after 2021 and found many of them were poorly capitalized and had grown quickly, often by taking on risky policies. In addition, many used an affiliate model that made their books harder for regulators to assess. This follow-up investigation analyzed the companies that filled the void left by the 12 failed firms, which collectively held about one-sixth of the Louisiana market. A team led by Sam Karlin found the firms that have grown the fastest share many characteristics with the firms that failed earlier, raising the specter of more collapses after another storm. State lawmakers have pledged to require deeper disclosure about payments insurance companies make to affiliates in the future.
As legislators vow to enact reforms after earlier reporting, grantee continues uncovering insurance-industry problems in Louisiana
