The Senate Resolution, introduced by Senator Connick, authorizes the legislative auditor and the Department of Insurance to conduct a comprehensive study on the financial transactions between foreign and domestic insurers operating in Louisiana. This initiative arises from concerns regarding the financial stability and market practices of property insurers, particularly in light of recent natural disasters and escalating insurance premiums. A report from Florida highlighted significant financial dealings between insurers and their affiliates, raising questions about the impact of these transactions on insurer solvency and consumer costs. The resolution aims to ensure transparency and accountability in the insurance market to protect policyholders.

The study will cover financial transactions from January 1, 2021, to December 31, 2024, focusing on various aspects such as financial data, relationships disclosed in regulatory filings, and the nature of payments made between insurers and affiliated companies. The legislative auditor is empowered to engage independent consultants for assistance and is required to submit a written report of findings and recommendations by September 1, 2026. This report will be shared with the Senate and the David R. Poynter Legislative Research Library, emphasizing the Senate's commitment to addressing potential issues within the property insurance market in Louisiana.