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'F' is for Florida and fiasco

The property insurance problem in Florida, which Gov. Charlie Crist and legislators supposedly improved earlier this year with new regulations and new government involvement in the insurance market, is looking decidedly unfixed. In fact, it looks more broken than ever. According to this story in the Miami Herald, legislators are stumped as to why, after all the government intervention, property insurance premiums not only didn't go down by as much as forecast, but in many cases are going up.

Hmmmm, do you think Gov. Crist or the Legislature will listen to what the market is telling them: that their insurance fix is like one of those mail-order Acme rocket packs so favored by Wile E. Coyote? You know, the ones that always blow up, whether from defective design or user error, it is not entirely clear.

It looks like the answer is no, and what's worse, that some legislators are ready to order another rocket pack. According to the story, even though lawmakers are perplexed as to why the new regulations have had the opposite effect of that intended, "some wonder whether government should take even a bigger role in the insurance market -- possibly taking over all windstorm coverage, for example." What was it Clausewitz said? "Never reinforce failure," I think is what it was. For more on this and other developments on Florida's insurance woes, check out this post and others I've written in recent months.



Rafael Mangual
Project Manager,
Legal Policy

Manhattan Institute


Published by the Manhattan Institute

The Manhattan Insitute's Center for Legal Policy.