Here’s a dog bites man story: The insurance industry wants to deregulate auto insurance premiums in Georgia.

Our friends at Georgia Watch tell us that the Legislature is considering a bill to toss out what’s know as "prior approval rate regulation" for auto insurance in the Peach State.  In Georgia, auto insurance premiums (but ot other insurance products) must be vetted by the insurance commissioner before taking effect to protect against gouging.  This is a pared down version of the insurance reforms that govern California’s insurance market (see our Prop 103 page).

Insurance lobbyists whine that premium regulation makes it harder for the companies to bring new prices and new products to auto customers (who are, no doubt, excited about wating in line so they can get the newest, coolest insurance policy the very minute it comes out).  They call it speed to market, but in the end it’s just a way to avoid oversight and standards.  Or put another way, speed to market means they can gouge policyholders faster. 

The other part of their mantra is "flexibility."  Same argument as speed to market: unfettered businesses are more efficient at figuring out what consumers want and getting it to them. And same result: flexibility means we can raise your premiums anytime we want. If I had a nickel for everytime I heard in insurance flak say that companies need more flexibility…I think I’ll start counting.  

 I’ll update the Georgia story, as I hear more.