Insurance companies in Louisiana are denying claims while profiting from investments.
Homeowners in Louisiana are facing a growing problem with their property insurance claim denials. A new report shows that more and more claims are being closed without any money paid out. This trend is tied to problems that started in Florida, where insurance companies have been pulling similar moves. The same companies are now doing business in Louisiana, and they’re following the same playbook—denying claims, raising premiums, and making money elsewhere while leaving homeowners with the bill.
In 2024, insurance companies across the country issued claim denials, closing over 40% of homeowner claims without paying a dime. In Louisiana, the number was even worse—nearly 45%. Several large insurance companies operating in the state closed more than half of all claims without giving policyholders any money. For example, Kin Insurance denied almost 70% of its claims in 2024. Others, like Spinnaker and Elevate, weren’t far behind. Even smaller, local companies followed the same pattern. For people who’ve been paying into these policies for years, it’s like finding out their safety net has holes in it.
These companies often point to underwriting losses as the reason for raising rates. Underwriting losses happen when the amount they pay out in claims is more than they take in from premiums. But that’s not the full story. While they might lose money in underwriting, they’re making far more through investments. In fact, across the country, insurance companies have lost about $23.5 billion from underwriting over the past 20 years. But in that same time, they made over $150 billion through investments and other business activities. That’s a huge difference—and it suggests they’re doing just fine financially, even if they say otherwise.
In Louisiana, the gap is even wider. Companies have lost about $1.6 billion on underwriting, but they’ve made over $88 billion in other areas. That means for every dollar lost, they made around $55 somewhere else. It raises a big question: If they’re making so much money on the side, why are premiums still going up? And why are they denying so many claims?
Another issue is how these companies move money around. Many insurers pay large fees to affiliated businesses—companies that are tied to them in some way. These payments take money away from what could be used to pay out claims. In Louisiana, insurance companies have paid out more than $27 billion to these affiliates since 2004. That’s money that could’ve helped homeowners recover after storms or other damage. Instead, it’s being moved out of reach, hidden behind complicated business structures.
All of this paints a troubling picture. Homeowners are being left in the lurch while insurance companies find ways to protect their profits. It’s not just about one or two bad companies—this is happening across the board. And unless something changes, more people are going to find out the hard way that their coverage doesn’t really cover them when they need it most.
People are being told to trust the system despite claim denials, to buy insurance as a form of protection. But when that system breaks down, or worse—when it’s set up to work against the very people it’s supposed to help—it becomes clear that more oversight is needed. Homeowners deserve better. They deserve insurance companies that play fair, pay when they should, and don’t hide their profits while pointing fingers elsewhere. Otherwise, this crisis won’t stay in Louisiana—it’ll spread even further.
Sources:
Florida Home Insurance Crisis Bleeding Into Louisiana
Louisiana homeowners are still facing an insurance crisis. Will the Legislature respond?
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