The regulation requires insurers to calculate discounts using a Louisiana-specific benchmark mitigation discount table developed by the National Association of Insurance Commissioners.

The benchmarks are based on hurricane risk modeling that evaluated typical Louisiana homes with different levels of mitigation, including FORTIFIED Roof, Silver and Gold designations. Modeling used two catastrophe risk models and adjusted the results for insurer expenses based on Louisiana homeowner rate filings.

The resulting loss reductions are translated into premium discounts that insurers must apply to qualifying policies.

Insurers must implement the discounts no later than Jan. 1, 2027, and they will apply to all new or renewed residential property insurance policies issued on or after that date.

Temple said the state developed the policy over several months as part of broader efforts to encourage stronger construction and improve the insurance market following years of hurricane losses.

“We've been working on that bulletin for many months,” Temple told WVUE-TV in New Orleans.

Temple said the state’s approach focuses on benchmark guidance rather than a mandated uniform discount rate.

“I think it's very important to distinguish — the bulletin sets benchmarks, not mandates,” he said.

Temple also said a single mandated discount would not reflect differences in risk across the state.

“There's no way to apply a set percentage to every risk, every home, irrespective of where it is, how it was constructed, zip code, everything like that,” he said.

Instead, Temple said benchmark discounts tied to modeled risk provide a more flexible approach.

“So the best approach … is to set benchmarks,” he said.

The bulletin applies to all property and casualty insurers authorized to write insurance in Louisiana. The Department of Insurance said insurers can access the benchmark discount tables through the agency’s fortified mitigation guidance resources.