Washington Warming to National Disaster Plan Idea
National News • March 16, 2007
A proposal for a national disaster plan to backup private hurricane and flood insurance markets appears to be gaining momentum in Washington.
This week, Rep. Barney Frank, D-Mass., chairman of the ...
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Subject: We need more capacity, not more regulation
Posted On: March 18, 2007, 8:48 pm CDT
Posted By: academic
Comment:
Government needs to adopt policies that attract private investment to the insurance market, not government capacity. Here we have an industry that, depsite making record profits in 2006, significatnly underperformed the Fortune 500. It's no wonder banks don't buy insurance companies. State regulation of insurance rates -- treating insurers as if they are public utilities -- is keeping investment out of the business and causing insurance shortages in Florida, the Gulf State and California. And it's all politics -- lies to consumers about the cost of owning homes in a dangerous places. As a country we need to accept the fact that, just as the cost of buying a home can double or triple over time, so too can the cost to insure that home.
Subject: We need more capacity, not more regulation