Regarding our class discussion from "The Armchair Economist" about insurance prices going up and pushing people out of the market, I found an article that talks about that very thing. Insurance companies are paying out $1.18 for every premium dollar they earn. They are have to raise their rates and stop writing new claims and stop renewing clients. They cannot afford to keep people insured so they are raising their rates. Those people at the very bottom cannot afford to pay for insurance so they deal without and drop out of the market.
When dealing with homeowners insurance there is a problem with prices rising for building a home and the upkeep costs. There was one story of a lady who had her house flood and the insurance company covered her claim but then refused to reissue insurance because there were other risks within her home. She now cannot afford insurance and has to find somewhere else to get coverage. It is interesting to me how you can find everyday items from Steven Landsburg's book.