Senate Concurrent Resolution No. by Senator Connick aims to authorize the legislative auditor and the Department of Insurance to conduct a comprehensive study of the financial transactions involving foreign and domestic insurers operating in Louisiana. This initiative arises from growing concerns regarding the financial stability and market practices of property insurers, particularly in light of the state's vulnerability to natural disasters and the rising costs of insurance premiums. The resolution highlights findings from a Florida report that indicated significant financial interactions between insurers and their affiliated companies, raising questions about the potential impact on insurer solvency and consumer costs.

The study will focus on financial data from January 1, 2021, to December 31, 2024, and will examine various aspects of insurer-affiliated company relationships, including management fees, reinsurance premiums, and other payments. The legislative auditor is empowered to engage independent consultants for assistance and is required to submit a detailed report of findings and recommendations for potential legislative or regulatory reforms by September 1, 2026. This resolution underscores the Louisiana Legislature's commitment to ensuring transparency and accountability in the insurance market to protect policyholders and maintain market stability.