The resolution, introduced by Representative Jordan, calls for a joint study by the House Committees on Ways and Means and Insurance, along with the Senate Committees on Revenue and Fiscal Affairs and Insurance, to explore the feasibility of establishing a Catastrophe Reinsurance Program in Louisiana. This program would involve the issuance of catastrophe bonds, providing insurance companies with an alternative method to secure reinsurance for property damage and casualty losses resulting from hurricanes and other natural disasters. The study aims to address the ongoing insurance crisis in Louisiana, where homeowners are facing skyrocketing insurance rates due to recent catastrophic weather events.

The joint committee is tasked with gathering input from various stakeholders, including insurance companies, and reviewing successful programs implemented in other states that have experienced similar natural disasters. The findings of this study are to be reported to the legislature by January 31, 2026, with the goal of enhancing the stability and affordability of homeowners' insurance in Louisiana by diversifying the risk associated with natural catastrophe losses.