Once upon a time, most Louisianans insured their homes with a traditional behemoth, a giant of the industry, like State Farm, Allstate, Farmers or USAA.
No more. Today, a sizable share of Louisiana homeowners now buy their insurance from small, undercapitalized and often unproven companies that lack the huge reserves to protect them when catastrophe strikes.
In some cases, these smaller firms never hire employees or even set foot in the state. Many are so small that they cant afford to hire agents, buy property or gather the data that would help establish the local expertise needed to write policies.
Instead, they outsource their operations to third-party administrators, known as managing general agents. While not new, the practice ha…
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