What Does Gov. Crist Have Against Florida Consumers?

TALLAHASSEE, January 27, 2010—The director of The Heartland Institute’s Florida Insurance Project today sharply criticized Gov. Charlie Crist for his comments at the Associated Press Florida Annual Planning Session, in which Crist said he would veto “consumer choice,” a bill pending before the Florida Legislature.

The proposed law, which would do nothing to change the underlying structure of the state’s insurance regulations, would allow consumers—voluntarily—to choose to pay higher rates from companies subject to a less-rigorous form of rate regulation than the de facto government-set prices imposed on most of the market. In 2009 the Republican governof vetoed a similar but less-sweeping measure that would have applied only to larger companies.

This year, sponsors changed the bill to accommodate concerns that prompted last year’s veto.

“What does Charlie Crist have against Florida’s consumers?” asked project director Christian Cámara. “The proposal would still let the governor keep every aspect of the government-imposed rates he so adores, while letting consumers pick the companies that will best suit their own needs.”

Cámara observes that there’s significant reason to think consumers may be willing to pay more for insurance from certain companies. “According to the Office of Insurance Regulation, about half of Florida’s insurers are losing money even though there hasn’t been a major storm in four years. At least three companies have become entirely insolvent, and two others have fallen under administrative supervision of OIR. There’s a lot of reasons why consumers may want to stick with a brand they trust and a company that will come through for them,” Cámara said.

“The legislature should resist what appears to be merely an attempt by the governor to derail legislation before it gets off the ground so that he can avoid finding himself once again in the position of having to choose between political expediency and what’s right for Florida.” Cámara added.

Christian Cámara, director of The Heartland Institute’s Florida Insurance Project, can be reached at (305) 608-4300 and ccamara@heartland.org.