You didn’t have to be Milton Friedman or Ronald Coase to figure out that Florida’s 90-day freeze on hikes in homeowners insurance premiums was going to have some repercussions. If you, for example, were required to sell your products or services at less than their value or for a loss, what would you do? You would probably find new customers or a new job that would pay you the actual value.
Now here is this story from the Tallahassee Democrat about the fourth insurer to stop accepting any business in Florida, in any line of insurance, or severely cut back on writing new business. What does Florida governor Charlie Crist say about it? According to the story:
"Industry response is about as expected, ranging from cooperative, as some companies already plan to seek meaningful reduction, to hesitant, as some companies have adopted a wait-and-see approach,” said Vivian Myrtetus, Crist’s spokeswoman.
About as expected, indeed.