Regulators Seem Inclined To Mess With Insurance Rates

The never-ending friction between common sense and political meddling has metastasized into needless automobile insurance regulation.  The New York State Department of Financial Services has started probing the legitimacy of considering occupation as a factor in setting automobile insurance rates.  In order to get the right prices, i.e. prices that reflect anticipated claims cost, insurance […]

Are Florida Homeowners Paying More For Less? Study Cites Price Regulation as the Major Reason

Price regulation of property and casualty insurance in Florida has been a failure, according to a new ACI study released by the American Consumer Institute.  The study shows that Florida insurance prices were 30% above the national average just 10-15 years ago, but today they stand at 90% above the national average, despite the state having […]

Tallahassee Democrat — John Rollins on Insurance Regulation Problems

John Rollins, former top actuary at Citizens and an ACI insurance expert, wrote about Florida’s property insurance woes and how the incoming cabinet and Governor can fix things.  This op-ed was published in the Tallahassee Democrat on September 29, 2010 and can be found at the following link: A longer version is also available as […]

Frivolous Sink Hole Claims in Florida; Adjusters Take 20% Share

There is an interesting article in the Wall Street Journal that discusses the recent surge in sink hole insurance claims.  The spike comes after adjusters have encouraged homeowners to file claims by handing out filers and going door-to-door.  However, many of the claims are frivolous.  And worse — if claims are paid, adjusters usually take a 20% share, which encourages frivolous claims and drives up […]

Consumers Pay More for Insurance Price Regulation; Get Little in Return

Mounting evidence shows that onerous state-based price regulation has adverse consequences on insurance markets — increasing industry costs, discouraging market entry and competition, and creating price distortions. This ConsumerGram provides additional evidence that state-based price regulation of automobile insurance tends to increase consumer prices, thereby reducing consumer welfare. These studies suggest that state-based price regulation […]