Economist: Government Should Stay Out of Insurance Biz

Carl Tannenbaum

More government involvment in providing property insurance isn't going to do anything to lower premiums. So says Carl Tannenbaum, the chief economist for Chicago-based LaSalle Bank.

Tannenbaum spoke before two professional groups yesterday at the Tampa Bay Performing Arts Center. He says people who live in areas that are more vulnerable to the whims of nature - such as along the Gulf - should pay more for coverage.

TANNENBAUM: And so you take a certain risk to do that and you're going to get soaked - no pun intended - and the notion that the government should always and everywhere be there to back up that investment is one that maybe we should get away from and make sure that private companies and private citizens aquire enough insurance to make sure they are not financially vulnerable in case we have another bad hurricane season.

Tannenbaum says private carriers are better able to manage risk and keep their costs under control than government agencies.

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