But insurance comissioner says it could lead to future rate hikes through use of more expensive catastrophe models
State Insurance Commissioner Jim Donelon says he's cautiously optimistic that Louisiana insurance policyholders will not be hit with higher insurance costs as a result of losses incurred by insurers from Hurricane Sandy.
Donelon says when it comes to catastrophes such as hurricanes, insurers are not allowed to recoup their costs nationwide and cannot use Sandy to justify rate hikes to state regulators.
"I'm cautiously optimistic that we will not see a dramatic or any significant effect on our market from either a price or an availability point of view."
However, Donelon says Sandy could impact future insurance rates through catastrophe or "cat" models.
"It certainly will buttress those scarier, more expensive "cat" models which will show up long term in rate increases."
