Risk averse: State control affects insurance market
The Oklahoman Editorial

"Here's what happens when governments assume too much control of the
property and casualty insurance market: Private insurers are driven
out, leaving taxpayers as the insurers of last resort.

Here's what happens when governments assume too much control of the
group health insurance market: Premium prices are driven up, leaving
some citizens uninsured.

Florida's largest private insurer, State Farm, is exiting the state.
Hit with huge losses after the hurricane season of 2004, State Farm
asked for a substantial rate increase. The state said no. State Farm
said goodbye.

Other large insurers had already left Florida, unique in the amount
of shoreline property being covered and the potential for that high-
dollar property to be destroyed by storms.

Oklahoma also has a property and casualty problem because of wind,
tornado, fire, ice and hail events. Unlike in Florida, though,
Oklahoma hasn't — yet — assumed too much control of the market.

State Farm said it's paid out $1.21 in claims for every dollar of
premiums collected since 2000. Florida's largest insurer is now a
state-run, nonprofit company created to offer coverage where private
insurance wasn't available. That area just got a lot bigger.

Group health care premiums in Oklahoma would likely get a lot bigger
if the state adds an autism treatment mandate. Lawmakers last week
rejected the mandate, but the fight isn't over. Mandate supporter
Rep. Mike Brown, D-Tahlequah, taunted opponents by saying, "Who's
running this, the insurance companies or you legislators?"

He should worry instead about running off insurance companies and
running up the uninsured numbers.

http://www.newsok.com/risk-averse-state-control-affects-insurance-
market/article/3344118