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Can Crist part the red tape of insurance?

By Robert Trigaux
Published January 15, 2007

ADVERTISEMENT [AP Photo] New Florida Gov. Charlie Crist speaks at a news conference about his plans for affordable property insurance Thursday, Jan. 11, 2007, in Tallahassee.

It may take an act of biblical proportion for Gov. Charlie Crist, 13 days into his term, to really break the stranglehold of influence the national insurance industry exerts on state lawmaking.

"There's a sea change in Tallahassee," Crist promised in remarks to a Hilton Carillon ballroom brimming with St. Petersburg Chamber of Commerce fans last week.

We may get a first hint of Crist's resolve with Tuesday's start of the special session of the Legislature dedicated to improving the state's property insurance pickle. Early legislative measures are surprisingly meaty given the timid, don't-rock-the-boat history of Tally insurance fixes.

Bravo, Governor. You're certainly pushing the right populist buttons at a time when many, many Floridians are in a world of insurance hurt. As volunteered to me by one retiree whose home insurance premiums just jumped 150 percent: "It's highway robbery without the gun."

Don't for a moment discount the insurance companies. This industry is legendary at protecting its most lucrative turf. And it is especially adept at leading part-time state lawmakers around by the nose. This is one financial industry that, unlike the giant banking business, basically has no oversight at the federal level.

And to be fair, Florida got kayoed by hurricanes in 2004 and 2005. If you were in the shoes of property insurers, you'd be looking at ways to insulate yourself from big hits ahead, too.

Crist will need to be careful not to overpromise Floridians on insurance rate relief. He may be tempted to say rates, especially those of state-run Citizens Property Insurance, are being reduced by 25 percent or more when what he really means is that some proposed rate hikes are simply being frozen. That does not deliver much relief to policyholders. But it may at least put off the day of the next price hike.

Remember, this is not Jeb Bush's show anymore. It is Crist's to shape. And that may mean some pretty good political theater in the coming days. Here's a look at the key actors:

- Insurance industry: Rich and prepping for damage control.

- Legislators: Hoping to appear proactive to voters, ready to take industry contributions.

- Alex Sink: New state CFO and the only Democrat in state Cabinet looking to demonstrate actual oversight of insurers.

- Reinsurance industry: Can't forget them. They insure the insurers, wielding huge power over Florida's homeowners rates, even from afar. Among reinsurance's megaplayers: Warren Buffett.

- Computer modeling industry: All those firms hired by the industry to "forecast" nasty weather for years to come and thus justify higher rates are under growing pressure to reveal more of what's inside their proprietary "black box" computer models. (Good luck.)

- Floridians: Last but hopefully not least. Pay some attention this week, and this year, to which legislators really have your interests at heart.

And let's not forget Gov. Crist. In recent weeks, several Florida newspapers have slipped and referred in print to "Crist" as "Christ." Presumably that's just a matter of bad spelling, not wishful thinking for an insurance miracle worker.

Robert Trigaux can be reached at trigaux@sptimes.com or (727) 893-8405.

[Last modified January 15, 2007, 05:45:43]