House Bill No. by Representative Dana Henry aims to enhance transparency and accountability in residential property insurance by enacting the "Louisiana Fair Insurance Modeling and Transparency Act." The bill introduces a series of requirements for insurers regarding catastrophe modeling used in rate filings. Insurers will be mandated to provide standardized disclosures that include details about the modeling process, such as the model vendor, exposure data, and whether post-mitigation conditions are considered. Additionally, insurers must conduct sensitivity analyses to compare modeled losses under different conditions, particularly in coastal and flood-prone areas. The bill also requires the separation of wind and flood surge assumptions in catastrophe modeling.

Furthermore, the bill empowers the commissioner of insurance to approve geographically differentiated risk analyses based on credible actuarial evidence, ensuring that risk evaluations reflect the unique characteristics of different communities. Starting January 1, 2027, the Department of Insurance will be required to report biennially to the legislature on various aspects of catastrophe modeling, including how it accounts for mitigation infrastructure and the impact of modeling assumptions on insurance premiums. The commissioner will also have the authority to promulgate necessary rules for the implementation of the act.