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An Addendum To National Fund

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The Tampa Tribune

Published: October 27, 2007

Regarding 'Canceled Coastal Insurance Policies Argue For National Disaster Fund' (Our Opinion< oct. 20):

The editorial is a reminder that all this talk about high insurance rates misses the most important fact accounting for the high rates. The insurance business is exempt from antitrust regulation.

The editorial mentions two bills in Congress: a bill that would include windstorm coverage along with the federal flood-insurance program, and a bill that would allow state-sponsored insurance funds to pool their catastrophe risk. Both of these have the public assume more risk, thereby benefiting the insurance companies.

The editorial does not mention another bill that will do more to reduce rates by opening up the reinsurance market. The Insurance Industry Competition Act (Senate Bill 618 and House Bill 1081) is designed to force insurance companies to open the market.

Readers can support that effort by urging their representatives and senators to join as co-sponsors.

ALVIN W. WOLFE

Lutz

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