Fresh after winning the National Championship in Basketball, Floridians are hit with huge increases in property premiums. (but notice the use of the maximal requsted amount to lure the reader)
http://tinyurl.com/h8b8w
Well, not yet anyway. The venerable Florida department of insurance ("DOI", like every other state-run insurance regulatory agency) must approve the rates. Has not the DOI caused part of the problem with another layer that distorts normal market processes? Might a putative price shock have been avoided via disintermediation?
The usual suspects have been lined up and identified. It's those confounding reinsurers. Of course, if reinsurers are determining the pricing stucture, why does the Florida DOI not hold a public hearing for them?? It benefits the market that they have no jurisdiction...and it benefits the DOI which has political oversight. "Its the reinsurers...they are the source of all of our sorrow!!!"
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