The resolution requests the formation of a joint committee comprising the House Committee on Ways and Means and the House Committee on Insurance to study 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 faced by Louisiana homeowners, who are experiencing rising insurance rates and premiums 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 dealt with 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 homeowner's insurance in Louisiana by diversifying the risk associated with natural catastrophe losses.