Florida Home Insurance Crisis Bleeding Into Louisiana

Palm Beach Gardens, Fla., May 13, 2025 — Weiss Ratings, the nation’s leading independent rating agency, has revealed critical data highlighting how Florida’s property insurance crisis is impacting Louisiana homeowners.

The ratings agency has identified three alarming trends among insurers operating in both states, raising concerns about financial stability and claims denials.

“Louisiana homeowners are being shortchanged by insurers prioritizing profits,” said Dr. Martin D. Weiss, founder of Weiss Ratings. “Regulators must act, and homeowners should choose insurers with fair practices and strong ratings.”  

According to data gathered by Weiss Ratings, insurers in Louisiana are increasingly doing three things: They’re closing claims with no payment whatsoever. They’re using underwriting losses to lobby for rate hikes while making investment profits that are far larger. Plus, they’re outsourcing to affiliates, which reduces funds available to pay claims.

More Claims Closed Without Payment

Nationwide, insurance companies closed 41.9% of homeowner claims with no payment in 2024, up dramatically from 25.8% in 2004. But in Louisiana, the denial rate was even higher at 44.6%.

The table below shows the large insurers operating in the state with the highest denial rates.

Large Insurers Operating in Louisiana Closing More Than 
 Half of Homeowner Claims with No Payment
(% of total claims closed as reported at year-end)

Seven companies closed over half of homeowner claims with no payment in 2024.

Kin Insurance closed 68.3% of claims, Spinnaker Insurance closed 60.6%, Elevate Reciprocal Exchange closed 54.9% and SureChoice Underwriters closed 51.3% — all with zero payment.

In addition, smaller insurers domiciled in the state followed a similar pattern: Cajun Underwriters Reciprocal Exchange closed 53.8% of claims with no payment, while Gulf States Insurance Company closed 47%.

Investment Profits Are Far Bigger Than Underwriting Losses

Insurers often blame premium hikes on underwriting losses, but their investment gains tell a different story.

Nationally, in the 20 years since 2004, insurers lost $23.5 billion on underwriting but earned $155 billion from investments and other sources.

In Louisiana, it was even more extreme: Companies operating in the state reported $1.6 billion in underwriting losses, dwarfed by $88.3 billion from investments and other sources. That’s $55 in profits for each $1 of underwriting losses.

Hidden Fees Reduce Funds Available to Pay Claims

Homeowner insurers have paid large fees to affiliated companies, reducing reserves available to pay claims.

Nationwide, they have paid $86.7 billion to affiliates since 2004, while those operating in Louisiana have paid $27.1 billion, effectively hiding these funds from regulators.

“We urge regulators, policymakers and consumers to scrutinize these practices,  demanding greater transparency,” concluded Dr. Weiss.

Media Contact: 

Nicole Brown
Weiss Ratings  
Email: [email protected]
Phone: (561) 291-9625

About Weiss Ratings: Weiss covers 53,000 institutions and investments, including safety ratings on insurers, banks and credit unions, as well as investment ratings on stocks, ETFs, mutual funds and cryptocurrencies. Since its founding in 1971, Weiss Ratings has never accepted any form of payment from rated entities for its ratings. All Weiss ratings are available at https://weissratings.com.

The U.S. Government Accountability Office (GAO) reported that the Weiss ratings of U.S. life and health insurers outperformed those of A.M. Best by 3-to-1 in warning of future financial difficulties, while also greatly outperforming those of Moody's and Standard & Poor's. The New York Times reported that Weiss “was the first to warn of the dangers and say so unambiguously.” Barron's called Weiss Ratings “the leader in identifying vulnerable companies.”