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The state-run property insurer of last resort in Louisiana plans to lower commercial rates.

The Advocate reports the bulk of those cuts would benefit the 352 commercial policyholders Louisiana Citizens Property Insurance Corp. covers in coastal areas. Those policyholders would see rates drop an average of 23.8 percent.

The rest of Citizens’ commercial customers – almost all of whom are in the New Orleans area – will see rates lowered an average of 0.3 percent.

Steve Cottrell, Citizens chief financial officer, says the rate cuts were made possible by a 20 percent reduction in the cost of reinsurance, the insurance that insurance companies buy to protect themselves against excessive claims.

The new rates would go into effect in February.

Topics Commercial Lines Louisiana Business Insurance Property